Certification of Agreement 053-2012 Tax Plan 2013 Amendment

The present "PLAN OF MUNICIPAL REVENUES" is a local law, mandatory for compliance by all residents and passersby of the Municipality, where annually the rates, levies, norms and procedures related to the tax system of the Municipality of the Central District are established.

The revenues of the Municipality are divided into tax and non-tax revenues. Tax revenues are those derived from taxes, service fees and contributions, and non-tax revenues are those that enter the municipality in the form of sales, transfers, subsidies, inheritances, legacies, donations, fines, surcharges, interest and credits.

The tax is the monetary contribution that the Municipality requires from natural and legal persons, national or foreign, in order to obtain resources for the fulfillment of its purposes, without being obligated to provide an equivalent consideration. Municipal taxes include those determined by the Law of Municipalities and any other established as such in special laws.

The Municipal Fee is the sum of money that the Municipality collects for the effective provision of a public service to a specific person, natural or legal. Without prejudice to the provisions of Article 84 of the Law of Municipalities, it shall be understood to include under this concept the provision of a public service, direct or indirect; the use of municipal or communal property; the use of municipal airspace, surface or subsurface; natural resources of any kind; the receipt of direct or indirect benefits from the maintenance or development of Municipal Urban Infrastructure; and the request for the provision of an administrative service. Insofar as other services are provided to the community, not yet specified in this Plan of Municipal Revenues, these shall be regulated through Municipal Agreements and shall form part of the present Plan.

Recovery of Investments is an obligation that the Municipal Corporation imposes on owners or possessors of real property and other beneficiaries, for the total or partial recovery of the investment made by the Municipality in the execution of certain local public works. This recovery may be made in two ways: 1) Through contribution for improvements; 2) Through benefits received by the users of the work. For these purposes, the passive subject of the obligation shall be: 1) The property adjacent to such works; 2) The person benefited by the same; or 3) Private or public motor vehicles and their users. This recovery shall be carried out according to the determination of such benefit made by the Mayor's Office, through the Finance and Administration Department together with the corresponding department. The Municipality is empowered to determine the quotas with general character for all taxpayers, taking into account:

• 1)

  The nature of the work or improvement;

• 2)

  The degree or percentage of direct or indirect benefit;

• 3)

  The total amount to be financed;

• 4)

  The term of recovery;

• 5)

  The economic and social conditions of the benefited community; and,

• 6)

  The commitments acquired by the Municipality to execute such projects. The Municipality, in the development of community benefit activities, as well as in the process of investment recovery, may establish trusts with the national banking system.

Rights are acquired through mandatory payments made by the taxpayer, either for the use of resources in the public domain within the municipal term of the Central District, or for the obtaining of licenses or authorizations to exercise or enjoy rights with respect to matters that are under the jurisdiction of the Municipality.

The Fine is the principal pecuniary sanction imposed by the Municipality for the violation or non-compliance with Laws, Regulations, Ordinances and other municipal provisions, as well as for the failure to timely comply with municipal obligations. The following shall constitute accessory sanctions: forfeiture, loss of concessions, privileges, prerogatives or exemptions. When forfeiture is not possible because the merchandise cannot be seized, it shall be replaced by a fine equal to the value thereof.

Taxpayers, responsible parties, withholding agents or third parties shall incur in default if they do not pay or deposit their tax obligations within the established deadlines for such purpose. Default shall commence running from the day following the date on which the respective payment or deposit should have been made, or in its case, from the date on which the violation was committed.

It is the responsibility of the Municipal Corporation of the Central District to create, reform or repeal municipal levies, with the exception of taxes and other charges decreed by the National Congress of the Republic. For this purpose, the Municipal Corporation of the Central District shall make known to taxpayers the pertinent provisions through publications in the Official Gazette "La Gaceta", the Municipal Gazette and the media of greatest circulation in the Municipality.

Without prejudice to the provisions of the foregoing articles and for the purposes of this Plan, the following are understood as:

• a)

  Law: The Law of Municipalities.

• b)

  Regulation: The Regulation of the Law of Municipalities.

• c)

  Plan: The Plan of Municipal Revenues of the Municipality of the Central District.

• d)

  Corporation: The Municipal Corporation of the Central District.

• e)

  Mayor's Office: The Municipal Mayor's Office of the Central District.

• f)

  The Municipality: It is the area comprising the Municipality of the Central District and in which the Plan of Municipal Revenues is applied.

• g)

  The Ministry: It is the Secretariat of State in the Offices of the Interior and Population.

• h)

  The Secretariat: It is the Municipal Secretariat.

• i)

  Cadastre: It is the Cadastre Department of the Municipality and the Cadastral Registry of the Municipality.

• j)

  The Treasury: It is the Municipal Treasury of the Central District.

• k)

  Levy: It is the tax or charge of a fiscal nature that the Public Treasury imposes on natural or legal persons.

• l)

  Contribution: It is the contribution that in accordance with Law, must be paid to the Municipality for the provision of services or public works of direct, collective or social security benefit. ll) Taxpayer: The municipal taxpayer, passive subject with respect to which the taxable event is verified.

• m)

  Passive Subject: It is the person obligated to comply with tax contributions (taxes, contributions, fees, rights and other charges) established by Law or its Regulation or by the Plan of Municipal Revenues, either as a taxpayer or as a responsible party.

• n)

  Passive Subject as Taxpayer: They are natural or legal persons who directly or through third parties exercise economic activities within the jurisdiction of the Municipality. o) Passive Subjects as Responsible Parties: They are natural or legal persons, as well as entities or groups that constitute an economic unit, that without having the character of taxpayers are in the duty, by express provision of Law, to comply with the commitments and obligations attributed to them. This condition falls upon: 1. Natural or legal persons, as well as entities or groups that constitute an economic unit, that are owners or responsible for businesses or establishments that exercise economic activities. 2. Distributors, agents, representatives, commission agents, consignees, and persons who exercise on behalf or for account of others, the activities referred to in this Plan, are responsible for the tax obligation that is generated for the person in whose name they act, without prejudice to their condition as taxpayers for the exercise of activities they perform in their own name. p) Municipal Solvency: It is the Certificate issued by the Municipality to Taxpayers to accredit their solvency in the payment of municipal taxes. q) Sworn Declaration: Document in which, under oath, taxpayers declare to the Municipality all information required regarding their municipal tax obligations. The sworn declaration of Real Property is replaced when a cadastre has been conducted by the Municipality. r) Withholding Agent: It is any natural or legal person, public or private, that by provision of Law, its regulation or this Plan of Municipal Revenues, is obligated to withhold from taxpayers the taxes in favor of the Municipality. s) Municipal Space: It is the space used by natural or legal persons for the installation, operation and commercialization of distribution networks of cables, television, electrical, telephone, digital data cables, or other system of wired, wireless, cellular telecommunication networks or any other existing in the Municipality of the Central District. t) UGA: Environmental Management Unit. u) PSA: Environmental Service Providers: they are individual consultants, consulting firms and analysis laboratories, that conduct environmental studies or reports that must be presented to the Municipality for environmental evaluation processes.

The Tax on Real Property is the tribute that falls upon the value of real property patrimony located in the Municipal term of the Central District, regardless of the domicile of the owner or the person possessing it with intent to own, and shall be paid by applying a rate of three lempiras with fifty cents (L3.50) per thousand, in the case of urban real estate and two lempiras with fifty cents (L2.50) per thousand in the case of rural property. For the application of this tax, in addition to the provisions established in the Law of Municipalities and its Regulation, the pertinent provisions of the Cadastre Regulation approved by Municipal Agreement Number 029-95 of March 8, 1995, published in the official gazette La Gaceta on March 25, 1995, shall be observed. Cadastral values shall be calculated based on the cadastral update conducted for the five-year period 2010-2015, with the application of the solidarity table approved by Agreement 0014 contained in Extraordinary Minutes Number 09 dated March 23, 2010.

The tax on real property shall fall upon the cadastral value registered as of May 31 of each year in the Municipal Cadastre; notwithstanding the foregoing, for areas not cadastred, the Cadastre Department may assess values according to market prices or accept the values of properties stated in the sworn declarations submitted by owners or legal representatives, without prejudice to the appraisal that may subsequently be conducted; in case of discrepancy between the cadastral value and the declared value, the greater value shall be taken as the basis. The fiscal period of this tax begins on June 1 and ends on May 31 of the following year.

The Tax on Real Property shall be paid with a deadline until August 31 of each year; in case of default, an annual interest equal to the rate that banks use in their active commercial operations, plus a surcharge of Two Percent (2%) annually calculated on balances, shall be applied.

In accordance with the cases provided for in Article 85 of the Regulation of the Law of Municipalities, the individual cadastral value may be adjusted at any time by the Cadastre Department. For purposes of the application of this article, the Urban Information Center (CIUR) shall provide in the most transparent manner all information of the city in an organized manner and with the most appropriate technology.

Exempt from payment of the Tax on Real Property are those contemplated in Articles 76 of the Law, 89 and 90 of its Regulation and in special and general laws in force. Real property that by virtue of Law is exempt and all other interested parties in obtaining the corresponding benefits shall request it annually, in writing, before the Municipal Secretariat, and the qualification of exemption requests shall be made based on profitability criteria, earnings, profits or surpluses obtained and the type of reinvestments made by the applicants. Likewise, they shall be subject to audits and investigations that are deemed appropriate, without prejudice to the reports that they periodically submit to the Municipal Corporation. The files submitted and resolved shall be returned to the Municipal Secretariat for filing and safekeeping.

Taxpayers subject to payment of the Tax on Real Property are obligated to present a Sworn Declaration before the Cadastre in the following cases:

• a)

  When they incorporate improvements to their real property;

• b)

  The presentation of the identity document, passport, numeric RTN and other documents that may be required according to the needs of the case.

• c)

  When they transfer ownership by any title of the real property or real properties of their ownership, this obligation is joint and several with the acquirer.

• d)

  In the acquisition of real property by inheritance, bequest and donation. For such purposes, the Cadastre Management will provide declaration forms free of charge, which must be presented within thirty (30) days following the completion of improvements, the transfer of ownership or possession of the real property or properties, or the execution of the promise to sell contract. The failure to present the sworn declarations referred to in this article will be sanctioned with a fine equivalent to 10% of the total annual amount of the tax to be paid, and with annual interest equal to the active rate that banks of the national financial system use in their commercial operations, plus a surcharge of two percent (2%) per annum calculated on balances in accordance with Article 109 of the Municipality Law. The Mayor's Office, through the corresponding departments, reserves the right to conduct such investigations as it deems pertinent on the real properties to verify that the incorporation of improvements, transfers and/or acquisitions of real property have been correctly carried out.

The Municipal Corporation will establish the system of advance payment of the Tax on Real Property, in accordance with what is established in Article 165, subsection a) of the General Regulation of the Municipality Law and this Plan of Levies. The System of Source Withholding for payment of the Tax on Real Property and solid waste and residential fire services is established on an optional basis. For these purposes, natural or legal persons, of public or private law, that have more than five permanent employees, financial or social security institutions through which the taxpayer has acquired a real property located within the municipal jurisdiction, through the obtaining of a mortgage loan or that has obtained a loan for another purpose, backed by the mortgage guarantee of said property, will voluntarily constitute themselves as withholding agents. The responsible agents will effect the withholdings during the period from March 1 to August 31. For the calculation of the amount to withhold through the respective monthly installments, the cadastral appraisal made as of May 31 of the prior calendar year will be taken as the tax base, without prejudice to the adjustment that is made by subsequent updates of the cadastral appraisal. The monthly amounts withheld must be entered by the responsible parties in the Municipal Treasury or in authorized collection offices, within fifteen days following the month in which the withholding was made, according to the form or declaration approved for these purposes or incorporated in those already existing. Withholding Agents that accept this obligation must present no later than February 15 of each year in the form that the Mayor's Office will provide them, a payroll of the employees who are owners or possessors of real property and who have expressly and in writing consented to incorporate themselves into this system, indicating among others, their personal data, the cadastral code, their exact location, and in case they are not the owner, the name of the owner. The fact of not having the payroll form does not exempt the obligation of its presentation.

In accordance with Article 113 of the Municipality Law, real properties will guarantee the payment of the taxes that fall on them, regardless of the change of owners that occur on them, even when they refer to judicial or extrajudicial foreclosures, the new owners must cancel said taxes, prior to their registration in the Property Registry. For these purposes the Municipality will implement the most suitable mechanism in coordination with the Property Registry of Francisco Morazán. CHAPTER II TAX ON INDUSTRY, COMMERCE AND SERVICES

The Tax on Industry, Commerce and Services is that paid monthly by every natural person or individual or corporate merchant, for their commercial, industrial, mining, agricultural activity, provision of public and private services, electronic communication, urbanistic development construction companies, casinos, savings and loan banking institutions, insurance companies and any other lucrative activity, which will pay taxes according to their production volume, annual income or sales as follows: FROM LEMPIRAS TO LEMPIRAS TAX PER THOUSAND 0.00 500,000.00 0.30 500,001.00 10,000,000.00 0.40 10,000,001.00 20,000,000.00 0.30 20,000,001.00 30,000,000.00 0.20 30,000,001.00 and above 0.15 For purposes of payment of this tax, all natural and legal persons, public or private, who engage in a continuous and systematic manner in the development of any of the economic activities indicated in the preceding paragraph, whether permanently or occasionally, are passive subjects. For the calculation of this tax the provision contained in Article 112 of the Regulation of the Municipality Law shall be applied. Taxpayers subject to the Tax on Industry, Commerce and Services must previously request an operating permit complying with the formalities established in the "Municipal Regulation that Institutionalizes and Regulates the Simplified Process for Obtaining a Business Operating Permit in the Central District." The failure to comply with this operating permit does not exempt the taxpayer from the payment of this tax nor from the payment of the corresponding service fees. This payment does NOT legalize the business and the taxpayer will have 90 days to legalize their respective business and/or commerce. In case the proper legalization is not carried out, the AMDC will proceed to close it. When a natural or legal person wishes to put into operation a business where one already operated, the Mayor's Office ex officio will conduct a field inspection to verify that it is not the same owners.

Without prejudice to what is established in Articles 114 and 115 of the Regulation of the Municipality Law, the business or company that has its headquarters in the Municipality and has branches or agencies in different places of the Republic is obligated to declare and pay taxes only on the total income received or generated in the Central District, regardless of whether it has or does not have an establishment or offices in this Municipality. Companies or businesses whose headquarters are domiciled in other municipalities and that carry out sales of merchandise or services to companies, businesses or merchants with domicile in this municipality are obligated to present on the date stipulated by this Plan a sworn declaration of such income. To verify such income, these taxpayers are obligated to provide all information required by the auditors of this Municipality, even in cases where accounting records are not kept in this Municipality.

Taxpayers subject to the Tax on Industry, Commerce and Services must present in the month of January of each year a Sworn Declaration of their income obtained from their economic activities in the previous calendar year, said declaration will serve as the basis for applying the respective rates per thousand and the sum of this result will be the monthly tax to be paid during the year in which the declaration is presented. The declared income will also serve as the basis for making the adjustments corresponding to the Sworn Declaration of the immediately prior year. The failure to present the declaration within the established deadline will be sanctioned with a fine equivalent to one month's tax. Payment of this tax must be made within the first ten days of each month, except for the month of January which must be paid no later than February 10; to payments made after the established deadline a charge of annual interest will be applied equal to the active rate that banks of the National Financial System use in their commercial operations, plus a surcharge of two percent (2%) per annum calculated on balances in accordance with Article 109 of the Municipality Law.

In addition to the corresponding service fees, pool halls will pay monthly for each table the equivalent of one daily minimum wage corresponding to the commercial activity of the Municipality of the Central District. The manufacture and sale of products subject to price control by the State will pay monthly their tax according to the volume of production, sales or annual income, according to the following scale: PER THOUSAND Up to L 30,000,000.00 L 0.10 From L 30,000,000.01 and above L 0.01 The tax indicated in this article must be paid within the first ten (10) days of each month and without prejudice to the payment that for income from other products must be made in accordance with what is established in Article 78 of the Municipality Law.

Taxpayers subject to the Tax on Industry, Commerce and Services that incur suspension or closure of the business or any other modification related to the operation of the business are obligated to present in the Collection Management and Financial Control Department a Sworn Declaration on these facts within thirty (30) days following such acts. Changes of domicile, transfer or change of owner of the business, change, modification or expansion of the economic activity of the business must be declared before executing said act. This declaration will serve as the basis for updating the records and calculating, where applicable, the tax that must be paid and which will be entered within ten (10) days following the date of presentation of the declaration. The failure to declare or its late presentation will cause a fine equal to one month's tax and the failure to pay will be sanctioned with a charge of annual interest equal to the active rate that banks of the National Financial System use in their commercial operations, plus a surcharge of two percent (2%) per annum calculated on monthly balances (Article 109 of the Municipality Law). In the case of disposition of the business by any title, the acquirer of the business will be jointly and severally responsible for this obligation.

The following changes or modifications will be presented before the Citizen Service Management: 1. Change from alphanumeric RTN to numeric, presenting the following requirements: 1. Request addressed to the Citizen Service Management requesting the change. 2. Photocopy of the new RTN. 3. Photocopy of identity card of the legal representative. 4. Photocopy of municipal tax clearance of the legal representative. 2. Change of business name from individual merchant to corporation and vice versa: 1. Request addressed to the Citizen Service Management requesting the change. 2. Photocopy of the new or modified public deed. 3. Sales volume form with the new data. 4. Photocopy of the RTN. 5. Photocopy of identity card of the owner or legal representative. 6. Photocopy of municipal tax clearance of the owner or legal representative. 7. Authenticated power of attorney in case it is not the owner or legal representative. 3. Change of domicile or address: 1. Request addressed to the Citizen Service Management requesting the change. 2. Compatibility approved in the Building Control Management, 4th floor. 3. Sales volume form with the new address. 4. Photocopy of identity card of the owner of the business or legal representative if it is a corporation. 5. Photocopy of municipal tax clearance of the owner of the business or legal representative if it is a corporation. 6. Authenticated power of attorney in case it is not the owner or legal representative. 4. Change of name of the business: 1. Request addressed to the Citizen Service Management requesting the change. 2. Sales volume form with the new name of the business. 3. Photocopy of municipal tax clearance of the owner of the business or legal representative if it is a corporation. 4. Copy of the public deed in case it is a corporation. 5. Authenticated power of attorney in case it is not the owner or legal representative. 5. Change of economic activity: 1. Request addressed to the Citizen Service Management requesting the change. 2. Compatibility approved in the Building Control Management, 4th floor. 3. Sales volume form. 4. Photocopy of identity card of the owner of the business or legal representative if it is a corporation. 5. Photocopy of municipal tax clearance of the owner of the business or legal representative if it is a corporation. 6. Copy of the original deed. 7. Authenticated power of attorney in case it is not the owner or legal representative. 6. Change of legal representative: 1. Request addressed to the Citizen Service Management requesting the change. 2. Accreditation of the new legal representative through a point of record if it is a non-profit entity, and deed of appointment if it is a company. 3. Photocopy of identity card of the new legal representative. 4. Photocopy of tax clearance of the new legal representative. 5. Sales volume form with the new legal representative. 6. Authenticated power of attorney in case it is not the owner or legal representative. 7. Change of owner or transfer of business: 1. Request addressed to the Citizen Service Management requesting the change. 2. Fill in two sales volume forms (one for closure and one for opening). 3. Photocopy of identity card and tax clearance of the new owner. 4. If it is a corporation, copy of the RTN. 5. If it is a corporation, current public deed. 6. Transfer and authenticated original with copy of each one. 7. Authenticated power of attorney in case it is not the owner or legal representative. CHAPTER III PERSONAL TAX

Personal Tax is a levy that falls on the annual income received by natural persons within this Municipality, whether or not they have domicile or residence in the same. For purposes of this article, income is considered all types of returns, profit, gain, dividend, rent, interest, product, benefit, participation, salary, wage, daily wages, fees and in general any receipt in cash, securities or in kind that modifies the taxpayer's assets.

Every natural person will pay annually a Personal Tax on their annual income received in this Municipality which will be computed by applying the rate provided in Article 77 of the Municipality Law, and which is as follows: FROM L. TO L. L. PER THOUSAND 1.00 5,000.00 1.50 5,001.00 10,000.00 2.00 10,001.00 20,000.00 2.50 20,001.00 30,000.00 3.00 30,001.00 50,000.00 3.50 50,001.00 75,000.00 3.75 75,001.00 100,000.00 4.00 100,001.00 150,000.00 5.00 150,001.00 or more 5.25 MODALITY OF INDIVIDUAL OR PARTICULAR DECLARATION. Natural persons subject to this tax may declare individually or particularly no later than April 30, the income received during the previous calendar year in the forms that the Municipality will freely provide. MODALITY OF EMPLOYER DECLARATION. For purposes of payment under the source withholding system, employers must submit the corresponding declaration no later than March 31. The fact that the taxpayer has not been provided with the form does not exempt them from the obligation to make the declaration, which in this case may be presented on plain paper with the requirements contained in the same form. REGARDING PAYMENTS. Natural persons who have declared under the modality of individual or particular declaration must pay the tax no later than May 31. Employers who have made withholdings under the source withholding system must, for payment purposes, enter such amounts to the municipality no later than April 15.

Those contemplated in Article 77 of the Law and 101 of the Regulation are exempt from payment of Personal Tax.

SOURCE WITHHOLDING SYSTEM. For the payment of Personal Tax, the Source Withholding System is established, consequently, all natural or legal persons that pay or credit income or rents to natural persons within the municipal term are obligated as withholding agents of personal tax to deduct it proportionally in the first quarter of each year, but at the judgment of the employer it may be deducted in a single installment in the month of January of each year. Employers are also authorized to deduct this tax from their workers who for any reason are separated from their companies or businesses in any month of the year. SANCTIONS. The presentation of declarations outside the established deadlines will cause a sanction of 10% of the tax to be paid. The failure to pay within the stated deadlines will be sanctioned with a fine equivalent to 25% of the value withheld and not paid and with 3% monthly on the amounts withheld and not entered within the stated deadline, without prejudice to paying the amounts withheld or not withheld. The amounts withheld by employers must be entered to the Municipality within fifteen days after collection. Non-compliance with the provisions of this article will be sanctioned in accordance with what is established in the preceding article.

For purposes of modification of values based on the aforementioned criteria, the Citizen Service Management is authorized to make modifications in the system, prior to issuance of a certificate by the Solid Waste Superintendence that clearly indicates the percentages to be modified and their justification.

Employers, whether natural or legal persons, private or governmental, that have five or more permanent employees, are obligated to present no later than March 31 of each year in the form that the Mayor's Office will provide them, a payroll of their employees with indication of salaries or wages and the amount withheld from each one; it is not a requirement to accompany the sworn declarations of the employees from whom the withholding was made. The employee payroll form will contain among other data, the following: Name, corporate name or business name, National Tax Registry, telephone, address of the business or company, date of withholding and name of the employer or legal representative and for each one of the employees, surnames and names, identity card, position held, salary or wages (gross income), tax deducted, credit, and total to be paid for each one of the employees. The fact of not having the payroll form does not exempt them from the obligation of its presentation. The failure to present the employee payroll within the stated deadline will be sanctioned with a fine of 10% of the total withheld and shall not be less than five thousand lempiras (L.5,000.00).

No natural person domiciled or resident in the Municipality shall be considered solvent in the payment of the Personal Tax of the Municipality solely by virtue of having paid in another municipality, except for Deputies elected to the National Congress and public officials with national jurisdiction appointed constitutionally, who may make payment of the present tax in the municipality of their habitual residence or where they exercise their functions at their election. Likewise, an adjustment may be made to the Income declarations made by taxpayers in those cases where by virtue of their profession, occupation, or standard of living an evident presumptive income greater than that declared is manifest. All professional associations are obligated to present before January 30 of each year a list of their members with identity number, full name, age, residential address and telephone, and place of work. For the issuance of personal tax solvency cards, taxpayers subject to the payment of this tax shall pay the sum of twenty-five lempiras (L25.00) for each card issued. Professionals are obligated to declare their personal income, including those that obtain income in an unofficial manner, without prejudice to the declaration of other taxes.

The Tax on Extraction or Exploitation of Resources is that paid by natural or legal persons who extract or exploit quarries, such as minerals, hydrocarbons, forests and their derivatives; fish, hunt, or extract marine, lacustrine, or fluvial species in seas and lakes, up to 200 meters depth and in rivers. This tax is subject to the regulations and sanctions established in the Regulation of the Law of Municipalities. The Municipal Mayor or, in his absence, the Vice Mayor is authorized to subscribe agreements with the Executive Directorate for Mining Promotion of the Secretariat of Natural Resources and Environment, the Forest Conservation Institute (ICF), the Secretariat of Agriculture and Livestock, and other dependencies of the Executive Branch in order to enable the collection of this tax.

To determine the tax referred to in this chapter, the tariff of 1% of the commercial value of twenty lempiras per cubic meter (L.20.00mt3) of the extraction or exploitation of the resource within the municipal term shall be applied, independently of its transformation center, storage, processing, or collection, or any other provision that the State may agree upon, in accordance with Article 80, second paragraph of the Law of Municipalities. For the purpose of the payment referred to in the preceding paragraph, it must be paid without including the added value that might result for said non-metallic mineral resource, due to its transformation or processing. In the case of metallic mining exploitations, in addition to the Tax on Industry, Commerce and Services, the Municipality shall be paid for each ton of material or workable waste processed, in Lempiras, the sum equivalent to fifty cents of the United States Dollar, in accordance with the value established in the Customs Valuation Factor. In the case of lime, the Tax on Extraction or Exploitation of Resources shall be paid as of two thousand (2,000) metric tons. Non-compliance with this provision shall incur a fine equivalent to the calculation that results from the tariff of 1% of the commercial value of seventy-five lempiras per cubic meter (75).

The Environmental Management Unit of the Municipality shall authorize the extraction of these resources prior to accreditation of the corresponding certificate, authorization, license, or concession from the State Secretariat in the Bureaus of Natural Resources and Environment, Executive Directorate for Mining Promotion, Forest Conservation Institute (ICF), and other dependencies that according to the resource to be exploited. Whoever performs this activity without the corresponding authorization shall be subject to the sanctions contained in Article 158 of the Regulation of the Law of Municipalities.

The natural and legal person engaged in the production and commercialization of these resources is obligated to present to the Municipality in the first three months of the year a sworn declaration of production volume, income, or sales, for the purposes of payment of the respective tax in accordance with the tariff established in Article 19 of this Plan of Arbitrios and the Mining Law.

The Livestock Tax is that which is generated and paid by natural and legal persons in the Municipal Treasury or in authorized institutions of the National Banking System, for the slaughter or sacrifice of livestock, as follows: 1. For head of major livestock, one current minimum daily wage. 2. For head of minor livestock, half of the current minimum daily wage. The wage to be applied is that of the lowest scale established in the current Executive Decree and that corresponds to agricultural activity, in the zone of the Central District. Additionally, it is mandatory to exhibit the bill of sale extended by the Department of Municipal Justice of the Municipality of origin. The administration and collection of this tax shall be the responsibility of the Department of Finance and Administration through the Management of Collections and Financial Control.

No natural or legal person, public or private, shall be exempt from the payment thereof, except by authorization or express disposition of the Municipal Corporation, prior application by the interested party or directly at the petition of any member of the Municipal Corporation.

The Public Services that the Municipality provides to the Community may be:

• a)

  Regular;

• b)

  Permanent; and, c) Occasional. These services are determined according to the basic needs of the population regarding hygiene, health, security, water and sanitation, markets, cemeteries, road infrastructure and transport, environment, education, culture, sports, urban planning and in general those required for the fulfillment of civil and commercial acts. Regular services are: 1) Collection, management and final disposal of solid waste; 2) Fire service; 3) Public lighting; 4) Supply of electrical energy; 5) Environment; 6) Citizen security; 7) Drinking water; 8) Other similar. Permanent services are: 1) Local facilities in public markets and commercial centers; 2) Use of public cemeteries. 3) Vehicle parking and parking meter services; 4) Use of facilities for livestock slaughter and similar; 5) Other similar services. Occasional services are: Authorization of accounting books and others;

  • 1)

    Authorization of permits for business operations, licenses and their renewals;

  • 2)

    Permits or licenses for construction and demolition of buildings, additions, modifications and remodeling of buildings, land divisions, urbanizations and others;

  • 3)

    Authorization and permits for public spectacles, exhibitions, expositions, raffles, games of chance and similar;

  • 4)

    Processing and solemnization of civil marriages;

  • 5)

    Registration of vehicles and firearms, etc;

  • 6)

    License of farmers, ranchers, slaughterers and others;

  • 7)

    Elaboration of surveys, topographic work and land divisions for marginalized neighborhoods and colonies intervened and recovered by the Municipality;

  • 8)

    Elaboration of plans and designs of constructive elements;

  • 9)

    Inspection of constructions.

  • 10)

    Extension of certifications, certificates and transcriptions of acts proper to the Mayor's Office.

  • 11)

    Cleaning of vacant lots.

  • 12)

    Occupation, opening, repair, circulation and road maintenance including public sidewalks.

  • 13)

    Placement of signs and advertising billboards, or their authorization;

  • 14)

    Use of public roads and spaces for aerial installations;

  • 15)

    Extension of permits for street vendors and sales stalls;

  • 16)

    License for exploitation of natural products;

  • 17)

    Authorizations of livestock bills of sale;

  • 18)

    Registration of livestock branding irons;

  • 19)

    Guides for livestock transfer between Departments or Municipalities;

  • 20)

    Assistance in emergencies due to natural or anthropogenic disasters or annual critical events such as droughts, forest fires and floods.

  • 21)

    Processing of applications for exemption qualification from municipal taxes and fees.

The municipal administration is authorized to collect the value of services through the procedures it deems convenient, ensuring corresponding fiscalization and maximum recovery of its real cost.

The solid waste management services that include cleaning, collection, transport and final disposal of solid waste are classified as:

• 1)

  Domestic: These are services intended for residential dwelling houses and vacant land. This is done to cover the real operational costs, allocating 50% of the value corresponding to the total cost of solid waste management service. The collection of this solid waste management service shall be monthly and shall be calculated in direct relation to average electricity consumption and according to the classification by zone, nomenclature and ranges that may be established. The Municipality shall charge the tariff established in the agreements issued for this purpose. The Department of Finance and Administration is authorized, by delegation of the Municipal Corporation, to issue said agreements.

• 2)

  Non-domestic: These are services that are charged with the payment of the Tax on Industry, Commerce and Service, and shall be in accordance with annual income by sales volume, where this shall cover the remaining 50% of real operational costs. The collection of this service fee shall also be monthly, in accordance with the following table: ANNUAL INCOME RANGE IN LEMPIRAS MONTHLY RATE FOR SOLID WASTE MANAGEMENT IN LEMPIRAS Up to 75,000.00 51.00 From 75,000.01 to 150,000.00 76.00 From 150,000.01 to 300,000.00 201.00 From 300,000.01 to 600.000.00 301.00 From 600.000.01 to 1,000,000.00 511.00 From 1,000,000.01 to 2,000,000.00 1,120.00 From 2,000,000.01 to 5,000,000.00 1,720.00 From 5,000,000.01 to 10,000,000.00 2,416.00 From 10,000,000.01 to 15,000,000.00 2,752.00 From 15,000,000.01 to 20,000,000.00 3,520.00 From 20,000,000.01 to 30,000.000.00 4,480.00 From 30,000,000.01 to 40,000,000.00 5,328.00 From 40,000,000.01 to 60,000,000.00 5,504.00 From 60,000,000.01 to 100,000,000.00 6,400.00 From 100,000,000.01 and above 9,600.00 For this purpose, the administration may design an effective monthly collection system starting in January 2010, and in this manner proceed to make the corresponding collections for the payment of the rate for solid waste collection, transport and final disposal services to all taxpayers of the Central District. For companies or sectors that by virtue of their economic activity constitute themselves as large companies or large generators, or that have a service provided to them a greater number of times for solid waste management per week, such as supermarkets, restaurants, hotels, assembly plants, commercial centers, schools, universities, factories, hospitals, and other similar ones, qualified by the Administration as appropriate, an additional charge of up to one hundred percent (100%) of the tariffs established in the above table is established.

• 3)

  Other generators: In the case of state institutions or dependencies, organizations exempted from the Real Property Tax, uncatalogued real estate, housing and other properties, and any other generator not included in the previous classifications, shall pay a rate according to the special Agreement issued by delegation of the Department of Finance and Administration. The Superintendent of Solid Waste of the Mayor's Office of the Central District Municipality shall be responsible for the supervision of the classification, collection, transport and final disposal of solid waste. Likewise, the management of hazardous, biological and highly contaminating solid waste at the municipal landfill shall be the responsibility of the same Superintendent; treatment at the municipal landfill of such waste shall be done through special cells that guarantee no damage to the environment. The charge for the provision of the final disposal service at the municipal landfill made by hazardous, biological and highly contaminating solid waste shall be in accordance with the criteria established by the Municipal Corporation through the corresponding Ordinance or Agreement. The Superintendent of Solid Waste is authorized to collaborate with the Department of Municipal Justice regarding the citation or service regarding the infraction of the prohibitions contemplated in clauses a, b, c, d, e, and j of Article 42 of this Plan of Arbitrios. In sectors and/or businesses and institutions where solid waste collection service is not provided but street sweeping service, transport and final disposal of Solid Waste is provided, the following rates shall be applied, according to the declaration presented: Domestic Sectors Commercial and Industrial Sectors a-) for street sweeping and cleaning 10% of the amount to be paid. b-) for management and final disposal at the municipal landfill: 10% of the amount to be paid. a-) for street sweeping and cleaning 15% of the amount to be paid. b-) for management and final disposal at the municipal landfill: 35% of the amount to be paid. In the determination of the amounts to be paid in concept of street sweeping, management, transport and final disposal at the municipal landfill, the information provided by the Cadastral Management shall be used as a basis regarding the zoning where the domicile, business and industry in question is located. Said information shall serve the Superintendent of Solid Waste to determine the total amount to be paid if the complete collection service were provided to them, according to the location zone. The Superintendent of Solid Waste is instructed to report to the Management of Collections and Financial Control about the colonies where collection service is provided and are not incorporated into the database, so that such Management may effect collection. A special account shall be created to sustain the operations of the Superintendent of Solid Waste. Said account shall be maintained only with funds from the payment of fines imposed for violating the prohibitions established in clauses a, b, c, d, e, and j of Article 42 of this Plan of Arbitrios. The Municipal Mayor is authorized to issue the agreements that develop the regulation for solid waste collection and corresponding collections.

All businesses such as: restaurants, commercial centers, stores, warehouses, housing and others, have the obligation to keep their sidewalks or spaces clean and free of waste or garbage, having the obligation to know the days and times that the garbage collection vehicle passes.

The Municipality shall charge for the disposal service of hospital solid waste in a special pit within the sanitary landfill, at the rate of three thousand lempiras (L3,000.00) per metric ton deposited by contractor company, clinic, hospital or laboratory, whether of public or private character. The Municipality may outsource the provision of this service following the procedures and mechanisms most feasible in accordance with the law.

The fire service is divided into Domestic and Non-Domestic or Commercial, and the collection for this service shall be made in the following manner:

• a)

  Domestic Service: shall be calculated by applying the factor of 0.0006 ten-thousandths to the cadastral value or to the declared value of the real estate property, excepting real estate properties subject to the general adjustment to which the value that results from the value calculated in concept of fire service rate in the year 2009 plus an increase in the following percentages shall be applied:

• b)

  Non-Domestic Service: shall be divided into properly non-domestic service and Commercial: 1) Properly non-domestic shall be calculated by applying the factor of 0.0006 ten-thousandths to the cadastral value or to the declared value of the real estate property. 2) Commercial: Shall be charged jointly with the Tax on Industry, Commerce and Services, in accordance with the following tariff: ANNUAL INCOME RANGE IN LEMPIRAS MONTHLY RATE IN LEMPIRAS Up to 50,000.00 30.00 From 50,000.01 to 100,000.00 50.00 From 100,000.01 to 300,000.00 60.00 From 300,000.01 to 600,000.00 80.00 From 600,000.01 to 1,000,000.00 100.00 From 1,000,000.01 to 2,000,000.00 120.00 From 2,000,000.01 to 5,000,000.00 140.00 From 5,000,000.01 to 10,000,000.00 180.00 From 10,000,000.01 to 15,000,000.00 220.00 From 15,000,000.01 to 20,000,000.00 260.00 From 20,000,000.01 to 30,000,000.00 300.00 From 30,000,000.01 to 40,000,000.00 350.00 From 40,000,000.01 to 60,000,000.00 400.00 From 60,000,000.01 and above 450.00 REAL PROPERTY CADASTRAL VALUE RANGE (LEMPIRAS) PERCENTAGE OF INCREASE 0-450,000 20% 450,001-1,000,000 25% 1,000.001 to 2,000,000 40% 2,000.001 TO 3,000.000 55% 3,000,001 to 4,000.000 65% 4,000.001 TO 5,000.000 75% 5,000.001 AND ABOVE 100%

RATE FOR CONSERVATION AND MANAGEMENT OF THE ENVIRONMENT: The service of maintenance, conservation, restoration and sustainable management of the environment is charged with the objective of covering the cost of operations and investments executed by the Environmental Management Unit, in such a way that this entity ensures its financial self-sustainability and can have the technical capacity necessary to face the environmental problems of the Central District Municipality. All natural or legal persons who conduct activities of industrial, commercial or service character, from the public or private sector, are subject to the Rate for Conservation and Management of the Environment. Said rate shall be charged monthly together with the Tax on Industry, Commerce and Service, in accordance with declared income and in accordance with the following table: INCOME RANGE IN LEMPIRAS RATE IN LEMPIRAS Up to 50,000.00 10.00 From 50,000.01 to 100,000.00 20.00 From 100,000.01 to 300,000.00 30.00 From 300,000.01 to 600,000.00 50.00 From 600,000.01 to 1,000,000.00 80.00 From 1,000,000.01 to 2,000,000.00 200.00 From 2,000,000.01 to 5,000,000.00 250.00 From 5,000,000.01 to 10,000,000.00 260.00 From 10,000,000.01 to 15,000,000.00 280.00 From 15,000,000.01 to 20,000,000.00 300.00 From 20,000,000.01 to 30,000,000.00 350.00 From 30,000,000.01 to 40,000,000.00 400.00 From 40,000,000.01 to 60,000,000.00 500.00 From 60,000,000.01 and above 600.00

For the purpose of achieving the self-sustainability of the UGA and improving the quality of the services provided by it, a special account shall be created where payments of all services provided by it shall be made.

In addition to the conservation and management of the environment, services shall be provided for: WASTE FROM TREE PRUNING OR GARDEN MAINTENANCE. The service of cleaning, collection, and final disposal of solid waste, which is carried out through compactors, shall not handle waste from tree pruning or waste derived from garden maintenance. It is prohibited to throw these waste materials in vacant lots, riverbanks and river beds or other urban areas such as parks, medians, rights of way, sports fields, among others. Neighbors may immediately transport said waste to the Municipal Landfill; otherwise, they must inform the Municipal Sanitation Department of their existence, so that it may proceed to collect them prior to payment of the fee established by said department for this service. In those areas served by compactors, the Municipality shall collect on its own initiative using appropriate vehicles for such purposes all waste resulting from tree pruning when the existence of such waste has not been reported to the Municipal Sanitation Department and are ostensibly abandoned. In this case, the responsible neighbor shall pay seventy-five lempiras (L.75.00) per cubic meter, for the concept of waste transportation plus a fine of seven hundred fifty lempiras (L.750.00).

The following are environmental prohibitions:

• a)

  It is prohibited to deposit waste outside the Municipal Landfill. Any institution or company that produces them must submit a request to the Municipal Sanitation Department for the handling and treatment of said waste. In the case of toxic and hazardous waste, it shall be the responsibility of the generator; improper handling thereof shall be sanctioned based on the Instruction Manual for the Management of Dangerous Hospital Waste approved according to Municipal Agreement 027 of May 7, 2007. For depositing waste outside the Municipal Landfill, a fine of ten thousand lempiras (L.10,000.00) per cubic meter of material shall be incurred for each infraction, and for failure to present the corresponding authorization for the use of the Municipal Landfill, the violator shall be subject to a fine of two thousand five hundred lempiras (L.2,500.00) each time, without prejudice to compliance with the provisions of the first part of this article.

• b)

  It is absolutely prohibited to dump garbage, construction waste, dead animals, and all types of waste in public places, streets, parks, boulevards, riverbanks and river beds, rights of way, vacant lots, among others. The infraction of this regulation shall incur a fine of two thousand to five thousand lempiras (L.2,000.00 to L.5,000.00). The vehicle in which the garbage is transported shall be seized until the fine is paid, without prejudice to the removal thereof or the charging by the Municipality of the cost of removal.

• c)

  Persons in charge of transporting waste to the Municipal Landfill must do so taking into consideration measures such as covering the waste with a tarp to prevent it from scattering on the public road.

• d)

  A person caught on the street throwing garbage or waste on the public road shall be punished with a fine of five hundred lempiras (L.500.00). The Municipal street sweeping service does not exempt each neighbor from the obligation to keep clean the sidewalk and green area in front of their residence.

• e)

  Commercial establishments, natural or legal persons must use mobile containers for the disposal of solid waste, which shall be placed on sidewalks on the days and times the waste collection service is provided by the Municipality, and must subsequently return them to their usual location so as not to obstruct pedestrian traffic. Construction waste must be deposited at the Municipal Landfill and shall be the responsibility of the project executor; construction waste may not be piled on the public road during construction execution. Non-compliance with the foregoing shall be sanctioned with an initial fine of one thousand lempiras (L.1,000.00), the second time of two thousand lempiras (L.2,000.00), and subsequent violations of five thousand lempiras (L.5,000.00), which amount shall be paid at the Municipal Treasury. All of the foregoing is without prejudice to the pecuniary and civil sanctions established in the General Environmental Law and its Regulations and the Solid Waste Regulations that are of national application.

• f)

  All businesses such as: fast food businesses, restaurants, car wash centers, and others that the UGA considers, must have installed grease traps with an inspection window at minimum, which must be maintained on a monthly basis. Likewise, under no circumstances shall the waste extracted from grease traps be thrown into the sanitary system network; rather, they must be submitted to a treatment system and comply with the parameters established in the Technical Standard for the discharge of Wastewater to Receiving Bodies and Sanitary Sewerage for proper disposal at the Municipal Landfill. Violation of the foregoing shall be sanctioned in the same manner established in section e) of this article.

• g)

  All repair shops and used oil generators (burned oil) must be established in accordance with the land use designated in Zoning Plans and in compliance with environmental measures established by the UGA. In the case of selling burned oil to third parties, proof of sale and final disposal must be obtained. In case of non-compliance with the foregoing and if its disposal causes an impact on the environment or human health, fines of L.500.00 (five hundred lempiras) to L.5,000.00 (five thousand lempiras) shall be applied, as appropriate, without prejudice to the cancellation of the operating permit.

• h)

  The accumulation of tires under conditions that may generate vector proliferation is prohibited. The infraction of this provision shall be sanctioned with an initial fine of five hundred lempiras (L.500.00), the second time eight hundred lempiras (L.800.00), and subsequent violations of one thousand to five thousand lempiras (L.1,000.00 to L.5,000.00), depending on the quantity of accumulated tires.

• i)

  Against persons or companies that burn solid waste or hazardous materials within the jurisdiction of the Municipality of the Central District, the following sanctions shall be applied: FIRST TIME Individual L.500.00 Company or business L.1,000.00 SECOND TIME Individual L.800.00 Company or business L.3,000.00 THIRD TIME Individual L.1,500.00 Company or business L.5,000.00 If the company or person burns toxic products and causes damage to third parties or the environment, it shall be responsible for remedying the problem it causes, regardless of the expenses incurred. All final disposal of waste must be carried out at the Municipal Landfill. The UGA, in coordination with the Municipal Department of Justice and the Special Environmental Prosecutor's Office, shall be responsible for ensuring compliance with the provisions previously established.

The UGA of the AMDC shall provide weed cutting service on its own initiative or upon complaint, with a charge according to the following table: Area of the land in square yards Amount in Lempiras to be paid for weed cutting service 0-300 square yards L.2,000.00 301-500 square yards L.2,500.00 501 square yards and over L.6.00 for each square yard It shall be through the Cadastral Management Office, Finance Management Office, Municipal Department of Justice, and the Environmental Management Unit that monitoring activities for the cleaning of vacant lots shall be developed through the database of land owners within the Central District.

No natural or legal person is authorized to cut trees in parks, boulevards, cemeteries, municipal lands, riverbanks and river beds, streets, avenues, sports fields, etc. (public or private lands) without authorization from the UGA. When a person needs to cut or prune a tree or shrub on their property within the urban area, they must submit an application and comply with the requirements established by the UGA, which shall determine whether or not the request is authorized. Documentation to be submitted for tree cutting or pruning application: 1. Cutting and pruning on private property due to damage: a. Copy of authenticated deed. b. Location sketch. c. Copy of identity card. d. Photographs of the tree and the damage it is causing. 2. Cutting or pruning in green area: a. Signatures of neighbors with identity numbers. b. Location sketch. c. Copy of identity card of the interested party. 3. Cutting or pruning of trees requested by institutions: a. Letter addressed to the manager of the Environmental Management Unit. b. Copy of identity card of the institution's representative. c. Location sketch. 4. Tree cutting due to construction: a. Copy of deed with authenticated copy if the application for Environmental Certification is being processed at the same time. b. If already holding a Construction License, present an authenticated copy thereof. c. Plan showing where the tree is located within the construction. d. Location sketch. e. Copy of identity card of the owner. f. Copy of receipt of payment of Property Tax. g. Whether a natural or legal person, the name on the deed must match the name of the applicant; in case of rental or if there exists a purchase agreement contract, a copy thereof, or purchase and sale contract, or rental contract and the deed from which it derives, must be presented. h. In case of projects where more than 20 trees must be cut, they must present a Facultative Operations Plan made by a professional in forestry sciences. 5. Tree cutting for construction near the areas of: El Hatillo, El Picacho, La Tigra National Park, United Nations Park, or Central District Subbasin: a. Copy of deed with authenticated copy if the application for Environmental Certification is being processed at the same time. b. Authenticated certificate from AMITIGRA. c. Authenticated certificate from United Nations Parks. d. Plan identifying the trees to be cut. e. Location sketch. f. Copy of identity card of the owner. g. Receipt of payment of Property Tax. h. Mark the trees to be cut. i. Whether a natural or legal person, the name on the deed must match the name of the applicant; in case of rental or if there exists a purchase agreement contract, a copy thereof, or purchase and sale contract, or rental contract and the deed from which it derives, must be presented. j. In case of proximity to any subbasin, omit the certificates from AMITIGRA and United Nations Park, presenting a copy of the technical report issued by the Water Basin Department of the Autonomous National Service of Aqueducts and Sewers (SANAA). 6. Tree cutting due to damage near the areas of El Hatillo, El Picacho, La Tigra National Park, United Nations Parks, or Central District Subbasin: a. Copy of deed with authenticated copy if the application for Environmental Certification is being processed at the same time. b. Authenticated certificate from AMITIGRA. c. Authenticated certificate from United Nations Parks. d. Plan identifying the trees to be cut. e. Location sketch. f. Copy of identity card of the owner. g. Receipt of payment of Property Tax. h. Mark the trees to be cut. i. Whether a company or individual, the name on the deed must match the name of the applicant; in case of rental or if there exists a purchase agreement contract, a copy thereof, or purchase and sale contract, or rental contract and the deed from which it derives, must be presented. j. In case of proximity to any subbasin, omit the certificates from AMITIGRA and United Nations Park, presenting a copy of the technical report issued by the Water Basin Department of the Autonomous National Service of Aqueducts and Sewers (SANAA). 7. Cutting of trees at risk (all those trees that due to their poor vegetative condition or poor root anchorage may fall or drop their branches, putting lives and property at risk): a. Photographs of the tree showing its condition. b. Copy of identity card of the interested party. If the application is approved, the applicant shall pay the following fee: TREE CUTTING TARIFF: FRUIT TREES L.250.00 TIMBER TREES L.800.00 TIMBER SPECIES UNDER PROTECTION (according to ICF list) L.5,500.00 HISTORIC TREES OR TREES WITH CULTURAL VALUE L.7,000.00 ORNAMENTAL TREES L.150.00 RISK L.100.00 Once the cutting of the tree or trees is approved, the interested party must proceed to sign a commitment agreement with the UGA, whereby they commit to planting within a determined time the number of trees that the UGA indicates, as well as the place where they must plant them or, failing that, the donation of materials or supplies necessary for plant production and maintenance of green areas, which must have a value equivalent to the percentage assigned according to the payment range for authorization of the cutting. Percentage of payment range donation Up to L.1,000 10% 1,000-5,000 20% 5,000 and over 30% In case of non-compliance with this commitment agreement, a fine of two thousand lempiras (L.2,000.00) per tree not planted shall be applied.

TREE PRUNING TARIFF: Pruning shall be understood as the maintenance of the width and height of the crown, thus obtaining a general balance of the tree. The person must also submit a properly justified application to the UGA. FRUIT TREE L.150.00 TIMBER TREE L.300.00 TIMBER SPECIES UNDER PROTECTION (according to ICF list) L.1,000.00 HISTORIC TREES OR TREES WITH CULTURAL VALUE L.2,000.00 ORNAMENTAL TREES L.100.00 Root Pruning L.100.00 RISK L.100.00

The validity of the Certificate of Cutting and/or Pruning of trees shall be six months from the date of issuance thereof. In case the interested party requires an extension thereof, they must request it one week before its expiration and it shall be granted for two additional months prior to payment of the amount established in this Tax Plan for the issuance of certificates. After the validity period of the cutting and/or pruning certificate has expired and has not been withdrawn, the interested party must initiate a new application and must previously pay a surcharge of 20% of the value of their permit.

The UGA shall provide the service of cutting or pruning exclusively and solely for trees at risk that are located outside electrical lines and as long as it does not affect the normal planning of the UGA. In case of trees near electrical lines, the interested party must arrange for cutting or pruning through the National Electric Company (ENEE) and/or the Fire Department.

The natural or legal person who, without authorization from the UGA, proceeds to cut trees or completely or partially destroys trees located in squares, boulevards, streets, avenues, passages, sports fields, or on private lands in neighborhoods, colonies, residential areas, cemeteries, or other places, shall be sanctioned as follows: SANCTIONS FOR TREE CUTTING 1. FRUIT TREE L.800.00 2. TIMBER TREE L.2,000.00 3. TIMBER SPECIES UNDER PROTECTION L.9,000.00 4. HISTORIC OR TREES WITH CULTURAL VALUE L.20,000.00 5. ORNAMENTAL TREE L.500.00 SANCTIONS FOR UNAUTHORIZED PRUNING 1. FRUIT TREE L.500.00 2. TIMBER TREE L.800.00 3. TIMBER SPECIES UNDER PROTECTION L.4,000.00 4. HISTORIC TREES OR TREES WITH CULTURAL VALUE L.5,000.00 5. ORNAMENTAL TREE L.300.00 Furthermore, machinery and wood resulting from the action shall be seized, and it shall be the Municipal Police together with UGA personnel assigned to this function who shall carry out said seizure. The natural or legal person who, without authorization from the UGA, cuts trees must sign a commitment agreement with this department whereby they commit to planting native species trees for each tree cut, or, failing that, the donation of materials or supplies necessary for plant production and maintenance of green areas, which must have a value equivalent to the percentage assigned according to the payment range of the cutting fine. Percentage of fine to be paid or donation Up to L.1,000 10% 1,000-5,000 20% 5,000 and over 30% All of this without prejudice to payment of the corresponding fine. The number of trees to be planted shall be established at the discretion of the UGA.

The natural or legal person who accidentally knocks down a tree on a public or private road, whether due to vehicular collision, construction, or any other activity, must pay the remediation costs, which shall include the repair of damaged infrastructure as well as payment of the tree cutting fine within thirty (30) business days. Non-compliance with the foregoing shall be sanctioned with a fine of 3 times the remediation costs in addition to the value of the sanction defined according to the type of affected tree.

The following are also subject to the foregoing sanctions: acts of poisoning (chemical, biological, or other), girdling of the trunk, and introduction of foreign bodies (wires, nails, rods, etc.) that partially or completely damage the plant, which shall be determined by the UGA. In case any of the foregoing actions are proven, a sanction shall be applied and the violator must pay twice the value established in the Article on sanctions for tree cutting of this Tax Plan.

It is strictly prohibited to exceed the maximum permitted noise or sound levels that shall be established according to zones and schedules, in accordance with the Police and Civic Coexistence Law, which shall be regulated as follows: In Industrial Zone: a maximum of 85 decibels shall be permitted within the facilities and 75 decibels outside the same, within a radius of 100 meters around it. In Commercial Zone, a maximum of 85 decibels shall be permitted inside businesses and 50 decibels outside the facilities, within a radius of 1 kilometer around it. In Residential or Habitation Zones: the maximum sound level permitted shall be 65 decibels inside residences and 50 decibels outside the same, always within a radius of 100 meters around it.

All nighttime entertainment businesses and commercial establishments such as: bars, nightclubs, restaurants, cantinas, sports fields, night clubs, etc., that in their operations are susceptible to producing sonic pollution, must respect the permissible sound levels of 85 decibels inside the establishment and 50 decibels outside the same. Likewise, they must have their facilities equipped with acoustic coverings that isolate sound so as not to disturb the tranquility of neighbors. Non-compliance with the foregoing shall be sanctioned with fines between five hundred (L.500.00) to five thousand lempiras (L.5,000.00), and repeat violation shall result in temporary and/or permanent closure of the business.

Public disturbances created with sound equipment in vehicles or those who detonate firearms, explosives, or similar near nighttime businesses, as well as in streets and residential zones, shall be sanctioned with a fine taking into account the severity of the violation and shall be imposed according to the following scale:

• a)

  Minor Violations: with fines of L.300.00 to L.500.00.

• b)

  Serious Violations from L.501.00 to L.5,000.00.

• c)

  Suspension or revocation of the operating permit and closure of the business in accordance with the Police and Civic Coexistence Law. Minor violations are those resulting from manifest responsibility, fault, or negligence, and serious violations are those resulting from willful intent or are the result of repeat offense or reiteration.

Fines for environmental violations shall be deposited into the municipal treasury and shall also result in the seizure of sound equipment and weapons in the possession of the violator.

Persons who in their homes disturb the tranquility, rest, and peace of their neighbors shall be sanctioned with fines of five hundred lempiras (L.500.00) to five thousand lempiras (L.5,000.00), in accordance with articles 132 and 133 of the Police and Civic Coexistence Law, with citations issued by the Municipal Department of Justice, and in case of repeat offense, the fine shall be double, which may be charged to the corresponding invoice for Property Tax of the violator, in case the latter is the owner of the property.

The promotion of products or services outside of commercial businesses, warehouses, schools, educational institutions, clubs, supermarkets, churches and institutions in general, using sound equipment and speakers that cause sonic contamination, shall be sanctioned with a fine from five hundred Lempiras (L.500.00) to five thousand Lempiras (L. 5,000.00)

Motor vehicles that cause excessive noise with horns and vehicles with loudspeakers that cause sonic contamination shall be imposed the sanction of five hundred Lempiras (L.500.00) to five thousand Lempiras (L.5,000.00) and in coordination with the Municipal Department of Justice the loudspeaker or sound equipment shall be seized until payment of the fine, excepting those that operate with a special permit for the promotion of activities of social benefit.

The UGA shall be responsible for granting special permits for the placement of loudspeakers and sound equipment, for the celebration of campaigns and special events, celebration of carnivals and any type of activities susceptible to producing sonic contamination; said permit shall be granted prior to the signing of a commitment agreement in which the applicant commits to respect the established sound levels and to perform the cleaning of the area after the celebration of the event. Every business that wishes to promote its products using loudspeakers and sound equipment, shall be responsible for obtaining its respective permit from the UGA. If it is demonstrated that with the development of the promotion sonic contamination is being caused, the permit shall be immediately suspended and the corresponding fine shall be applied.

In the areas located within the historic center of the city, the Historic Center Management shall be responsible for granting permits for the placement of loudspeakers and sound equipment for the development of any event.

Whoever wishes to carry out any of the activities described below, shall pay for the special permit the following amounts:

• 1)

  For the celebration of carnivals, one thousand Lempiras (L.1,000.00) daily;

• 2)

  For the celebration of promotions of commercial establishments three hundred fifty Lempiras (L.350.00) for each day the event or activity is celebrated. Said permits shall be granted for up to two consecutive days in a week and no more than six (6) hours per day, which may begin starting at eight in the morning (8:00 a.m.) and may not exceed two in the morning (2:00 a.m.).

The use of parks and green areas of the Central District shall not be authorized for the development of profit-making activities. In case of noncompliance, the violator shall be fined in the amount of five thousand Lempiras (L. 5,000.00). SECTION II ENVIRONMENTAL EVALUATION PROCESSES

CATEGORIZATION. In compliance with Decree 181-2007, the AMDC assumes the environmental evaluation processes under the following categories: A. Category 1: for projects that must only report their activities, receiving in recognition a registration certificate. B. Category 2: for projects with predictable impacts that must sign a standardized contract prior to their environmental authorization. Those established in Article 1 of the decree in question are excepted. Authorizations shall be granted according to the following Municipal Categorization Table: Municipal Categorization Table: Type of Project Criterion Category 1 2 1 1.. Chemical Industry. Soaps, detergents and other cleaning products manufactured through industrial process Size P Packaging or handling of Pharmaceutical Products Size P M Manufacturing or processing of Pharmaceutical Products Size P Cosmetic Industry Size P / M G Distilleries Size P Inks Size P Solvents or diluents Size P Adhesives or similar (water-based) Size P M / G Adhesives or similar (organic-based) Size P Industrial Gases Size P Agrochemicals organic fertilizers Size M G Agrochemicals inorganic fertilizers Size P M Agrochemicals biocide Packaging process Battery Factories Size P Battery Factories Size P Manufacturing of plastic, rubber and similar products Size P M/G Tanneries Size P Synthesis of organic products Size P Galvanic processes, except for gold or silver Size P / M Manufacturing of gunpowder and explosives Size P Production and storage of pyrotechnic products Size X Paper, cardboard and derivative manufacturing Size P Industrial laboratories for chemical and biological analysis All X 2. Food Industry Processors of dairy products Lt Milk / day >= 1,000 < 10,000 >= 10,000 < 50,000 Meat and derivative processors Size P Coffee roasting and derivative operations Size P / M Breweries P / M Manufacturing of non-alcoholic beverages and similar Size P M / G Water bottling and ice manufacturing Size P M / G Concentrated animal feed Size X Seafood packers Size P Food processors and packagers Size P M Processing and packaging of seasonings Size M G Elaboration of Candies, churros, snacks, etc. Size P Manufacturing of Flours and pastas for human consumption Size P M/G Salt processing Size M G Bakeries, Restaurants and Fast Food Size X Slaughterhouses Heads/week <=5 >5, <=20 3. Agricultural Sector Crops with cutting-edge technology Ha < 15 >= 15, <100 Crops with medium technology Ha < 50 >= 50, <100 Crops with low technology Ha > 50 Grain dryers fuel type electric fossil/Biomass Ecological coffee benefits QQ / week <500 > 500 Traditional coffee benefits QQ / week <= 800 Rural collection centers for agricultural products All X Irrigation projects, surface or by gravity Ha > 10, <= 50 Irrigation projects, pressurized (piping) Ha > 10, <= 50 > 50, <= 100 Irrigation projects, reconversion and rehabilitation Ha > 20 Solar salt extraction Ha > 1, <= 10 > 10 Cooked salt extraction Ha <= 5 4. Livestock Sector Cattle, equine, ovine and similar ranches Head > 100, <= 1,000 Pig farms Pigs > 20, <= 100 Poultry farms Birds >=1,200, <= 2,500 > 2,500, <= 5,000 Land-based fish farming activity Ha > 1, <= 5 > 5, <= 10 Cage-based fish farming activity Ha <= 0.25 Shrimp farming Ha <= 5 5. Forest Sector Industrial wood transformation (includes elaboration of broom handles, stakes, furniture, fences, profiles, moldings, doors, windows, fish traps and others) Pt/day >=1000 Charcoal production kg/month >=10,000 Wood treatment and preservation (by physical, chemical or mechanical systems) Size all Deposit and dimensioning of wood Size All Seed extraction plant kg/month >=1000 Reforestation and forestation plans with introduced forest species Hectares >=100 Introduction of forest species in Vitro Bulbs >=1000 6. Energy Sector Hydroelectric Mw. >=0.5,<=1 >1,<=3 Wind Mw. >=5 Photovoltaic Mw. >=0.1 Biomass Source >=3 Geothermal Mw. >=5 Thermal plants (by fossil fuel combustion) Mw. > 0.5, <= 1 Electrical substations Size All Transmission lines Location populated centers Hydrocarbon storage Gal. >= 1,000 <=6000 <6000, <= 20,000 Hydrocarbon service stations All 7. Hotel and Tourism Sector Hotels and other accommodation centers No. of rooms/ Location >=10, <50 >=50 Museums and Theaters Size All Permanent amusement parks Ha <=5 >5, <10 Mechanized cable cars Size All Golf courses Ha <=20 >20 Sport Fishing Size All Sport Hunting (mammals and birds) Size All Other Centers and Ecotourism Activities Location Intervened zones Non-intervened zones 8. Hospital Sector CESAR Size All CESAMO Size All Medical Clinics Type of Service Outpatient Service Emergency and Outpatient Service Non-hospital clinical and pathological laboratories Labor personnel <= 10 Non-hospital dental clinics Size All Cadaver preparation centers Size All Non-hospital blood banks Size All Private radiodiagnosis services Size All Veterinary clinics Type of Service Outpatient and Emergency Hospitalization 9. Infrastructure Sector Local roads, highways, airports, railways, waterways and related structures Type of Operation maintenance rehabilitation improvement Streets, viaducts and penetration roads in previously intervened zones Type of Operation rehabilitation improvement construction reconstruction Dams and Reservoirs Capacity in cubic meters >= 500 < 2,000 >= 2,000, < 50,000 Aqueducts and Sewers Users >= 1000, < 5000 >= 5,000 Culverting of streams Location urban zone Sports complexes Ha >=2, <=5 >5, <=10 Subdivisions, urbanizations, condominiums and residential complexes in zones where no land use plan exists Number of dwellings From 1 to 5 From 6 to 20 Subdivisions, urbanizations, condominiums and residential complexes in zones with ordering plan or Number of dwellings From 20 to 50 From 51 to 200 Municipal markets, collection centers for food storage and distribution, mass transportation systems and terminals for land transportation of passengers and cargo when no land use plan and ordering plan exists m2 of land use < 10,000 Markets, collection centers for food storage and distribution, mass transportation systems and terminals for land transportation of passengers and cargo in zones with an ordering plan or m2 of land use >= 10,000, < 30,000 >= 30,000 Construction of Buildings for industrial use m2 of land use >= 500, < 3,000 >= 3,000, < 10,000 Construction of Buildings for commercial, educational, social use, etc. m2 of land use > 2000 < 5,000 >= 5,000 Fords, bridge boxes, culverts as government projects Size All Other buildings and infrastructure when no ordering plan or certification of land use exists m2 of land use >= 500 < 5,000 >= 5,000 < 10,000 11. Manufacturing Factories of clothing and fabric accessories Size P M / G Paper, cardboard and derivative transformation Size P M / G Footwear manufacturing Size M G Home appliance manufacturing Size M G Manufacturing of tiles, blocks, sheets and other cement derivatives Size M Manufacturing of metal products Size M G Printing houses Size P / M G Manufacturing of furniture and other wood accessories Size M / G Manufacturing of plastic products Size P M / G Stone cutting, carving and finishing Size P M Glass and derivative manufacturing All x Manufacturing of lime and/or plaster Ton / year ≥50,<70 ≥70,<100 Manufacturing of cigars and cigarettes Size M G 12. Services Sector Dry cleaning laundries All X Domestic fumigation services All X Refrigeration workshops All M G Automotive maintenance shops Size M G Vehicle wash and lubrication centers Size P M / G Photographic laboratories Size P M / G Electromagnetic wave transmission antennas All X for communication 13. Waste Management Oxidation ponds Size All Other physical-biological treatment plants M3/day > 50 Physical-chemical treatment plants M3/day > 12, <= 50 > 50, <= 100 Municipal sanitary landfills Population to serve < 20,000 Private sanitary landfill (non-hazardous waste) Size All Incineration of non-hazardous waste Ton / day > 1 Paper (bleached) and plastic recycling plants Ton / day >= 0.1, <= 1.5 > 1.5 14. Biodiversity Sector Zoos (vertebrates) Species CITES II and III Animal farms Non-commercial use Fauna rescue centers Size All Private fauna collections Non-domestic Species CITES II and III Aquariums Size All Other Any project not included in the previous list, but which in the criterion of the UGA is susceptible to degrading or contaminating the environment shall be required to request its environmental authorization and when applicable shall proceed with its corresponding process in the State Secretariat of the Offices of Natural Resources and Environment (SERNA). The criterion by size in the industry and services sector refers to the number of employees, understood as follows: P = Small (between 5 and 20 employees), M = Medium (between 21 and 100 employees), G = Large (more than 100 employees) The projects referred to in the listing in the agricultural, livestock and forest sectors are understood to be developed in areas suitable for this activity, identified by a land use plan or in ecologically intervened properties, according to technical opinion. The Categorization referred to in this listing does not substitute the sound technical judgment of environmental analysts; when so determined by the competent authorities, a project may be upgraded from its entry category, requiring the proposer for the corresponding actions. When the same project includes two or more activities defined in this listing, the categorization of the project shall be determined by that activity that is included in the superior category. Size of companies: P= SMALL; M= MEDIUM; G= LARGE X: SIZE OF COMPANY DOES NOT MATTER (ALL) M3: CUBIC METERS M2: SQUARE METERS *PT.: BOARD FEET; Ton: Metric Tons Mw: Megawatts; Ha: Hectares Gal: Gallons; QQ: Quintals HA: Hectares; Lt.: Liters

Environmental Audits: Natural or legal persons who have begun operations that do not have environmental permit, and that belong to categories 1 and 2 stipulated in the municipal categorization table, shall request from the UGA an Environmental Audit to continue their operations and guarantee therewith the compliance with environmental legislation.

The following requirements shall be handled for the environmental evaluation processes for Category 1 and 2 projects and Environmental Audits, renewal, expansion and/or remodeling: A. CATEGORY 1 PROJECTS Publish in the newspaper of greatest circulation a Notice of Project Submission before the Environmental Management Unit of the AMDC, so that any natural or legal person may proceed to present a complaint or claim before the UGA in the time estimated for the process.

• •

  Application submission shall be presented by a legal representative on white paper, office size. (Format C1)

• •

  Technical Report (2 to 5 pages attaching process diagrams and schematic plans, both in letter or office size, when applicable).

• •

  Project location plan (urban zones) for rural zones the location of the project on a 1:50,000 map or any other graphic medium that shows the characteristics of the project's surroundings is required.

• •

  Constructive Floor Plan, Floor Plan that reflects the land and the area to be built, facades authorized by a Civil Engineer with corresponding seal and signature.

• •

  Original Compatibility Certificate issued by the Construction Control Management. Municipal Solvency and Payment of Real Property.

• •

  Document of company constitution, of individual merchant or legal personality.

• •

  Power of Attorney document from the project owner to the legal representative.

• •

  Property title of the place where the project will be developed duly stamped and registered, in case of lease present a copy of the deed from which the contract proceeds and copy of the contract.

• •

  Photocopies of deeds or any other type of document shall be presented authenticated. Certificate of authorization for the provision of basic services (SANAA, ENEE and Municipal Sanitation Superintendence).

• •

  In case it is close to any sub-basin of the Central District, present technical report issued by the Hydrographic Basins Department of SANAA.

• •

  Certificates from National Parks, AMITIGRA and Institute of Forest Conservation authenticated, in case of construction in El Picacho, El Hatillo and surrounding zones.

• •

  Sworn statement from the proposer assuring that all information presented is true.

• •

  Amount of Project Investment. Others requested by the UGA. Observations: In case tree cutting is necessary, an application shall be submitted before the UGA. In case of projects where more than 20 trees must be cut, they shall present an optional Operations plan prepared by a professional in forest sciences. B. CATEGORY 2 PROJECTS Publish in the newspaper of greatest circulation a Notice of Project Submission before the Environmental Management Unit of the AMDC, so that any natural or legal person may proceed to present a complaint or claim before the UGA in the time estimated for the process. The application shall be presented by a legal representative on white paper, office size. (Format C2). Qualitative Environmental Diagnosis, prepared by experts in environmental matters and properly registered in the AMDC. (Format DAC). Document of company constitution, of individual merchant or legal personality. Power of Attorney document from the project owner to the legal representative. Property title of the place where the project will be developed duly stamped and registered, in case of lease present a copy of the deed from which the contract proceeds and copy of the contract. Original Compatibility Certificate issued by the Construction Control Management. Certificate of authorization for the provision of basic services (SANAA, ENEE and Municipal Sanitation Superintendence). Photocopies of deeds or any other type of document shall be presented authenticated. Sworn statement from the proposer assuring that all information presented is true. In case it is close to any sub-basin of the Central District, present technical report issued by the Hydrographic Basins Department of SANAA. Certificates from National Parks, AMITIGRA and Institute of Forest Conservation authenticated, in case of construction in El Picacho, El Hatillo and surrounding zones. Municipal Solvency and Receipt of payment of Real Property Tax. Others requested by the UGA. Observations: In case tree cutting is necessary, an application shall be submitted before the UGA. In case of projects where more than 20 trees must be cut, they shall present an optional Operations plan prepared by a professional in forest sciences. C. ENVIRONMENTAL AUDITS:

• •

  The application shall be presented by a legal representative on white paper, office size. (Format AA).

• •

  Environmental Audits Technical Report, prepared by experts in environmental matters and properly registered in the AMDC. (Format MTAA).

• •

  Document of company constitution, of individual merchant or legal personality.

• •

  Power of Attorney document from the project owner to the legal representative.

• •

  Property title of the place where the project will be developed duly stamped and registered, in case of lease present a copy of the deed from which the contract proceeds and copy of the contract.

• •

  Original Compatibility Certificate issued by the Construction Control Management.

• •

  Photocopies of deeds or any other type of document shall be presented authenticated.

• •

  Sworn statement from the proposer assuring that all information presented is true.

• •

  In case it is close to any sub-basin of the Central District, present technical report issued by the Hydrographic Basins Department of SANAA.

• •

  Certificates from National Parks, AMITIGRA and Institute of Forest Conservation authenticated, in case of construction in El Picacho, El Hatillo and surrounding zones. Others requested by the UGA. D. RENEWAL: The application shall be presented by a legal representative on white paper, office size. (Format RA). Power of Attorney document from the project owner to the legal representative. Sworn statement from the proposer assuring that all information presented is true. Photocopies of documents shall be presented authenticated. Present a report of compliance with mitigation measures prepared no more than three months before the submission of the renewal request. Present a copy of certificate issued by the UGA that accredits that the Project has complied with the measures established in the controls and monitoring. Others requested by the UGA. E. EXPANSION AND/OR REMODELING: Publish in the newspaper of greatest circulation a Notice of Project Submission before the Environmental Management Unit of the AMDC, so that any natural or legal person may proceed to present a complaint or claim before the UGA in the time estimated for the process. The application shall be presented by a legal representative on white paper, office size. (Format RA). Power of Attorney document from the project owner to the legal representative. Sworn statement from the proposer assuring that all information presented is true. Photocopies of documents shall be presented authenticated. Present a report of compliance with mitigation measures prepared no more than three months before the submission of the renewal request. Present a copy of certificate issued by the UGA that accredits that the Project has complied with the measures established in the controls and monitoring. Original Compatibility Certificate issued by the Construction Control Management. Technical Report of the expansion and/or remodeling (2 to 5 pages. Attach process diagrams and schematic plans, both in letter or office size, when applicable). In Category 1 projects. Qualitative Environmental Diagnosis, of the expansion and/or remodeling, prepared by experts in environmental matters and properly registered in the AMDC. (Format DAC). In Category 2 projects. Environmental Audits Technical Report, of the expansion and/or remodeling, prepared by experts in environmental matters and properly registered in the AMDC. (Format MTAA). In case of projects subject to Environmental Audits. Constructive Floor Plan, reflecting the land and the area to be built, facades authorized by a Civil Engineer with corresponding seal and signature. Others requested by the UGA. Observations: In case tree cutting is necessary, an application shall be submitted before the UGA. In case of projects where more than 20 trees must be cut, they shall present an Optional Operations Plan prepared by a professional in forest sciences.

Charges shall be collected for the environmental evaluation processes for the execution of projects, industrial installations or any other public or private activity intended to be developed delegated to the Municipality of the Central District by means of Decree 181-2007, through the following tiered tariff: AMOUNT OF INVESTMENT REALIZED RATE

• 1)

  For the first 200,000.00 1.00 %

• 2)

  For fraction over 200,001.00 Lempiras up to 1,000,000.00 Lempiras. 0.50 %

• 3)

  For fraction over 1,000,001.00 Lempiras up to 20,000,000.00 Lempiras. 0.05 %

• 4)

  For fraction over 20,000,001.00 Lempiras. 0.02 % Payment shall be made to banks of the National Financial System authorized prior to the granting of the respective certificate.

Companies that have begun operations that do not have environmental permit, and that belong to categories 1 and 2 stipulated in the municipal categorization table, shall request from the UGA an Environmental Audit to continue their operations and guarantee therewith compliance with environmental legislation. The cost of the audit shall be calculated according to the amount of the investment taking as reference the table of the previous article. This without prejudice to the payment of a fine which shall be equivalent to 5% of the permit amount for each year after the beginning of operation thereof.

Charges for studies, expert opinions, environmental analyses, project status certificates requested by the State Secretariat of Natural Resources and Environment, controls and monitoring of mitigation measures for businesses or projects carried out by the UGA, shall be subject to the payment rate according to the following table: AMOUNT OF INVESTMENT REALIZED RATE

• 1)

  For the first 200,000.00 0.250 %

• 2)

  For fraction over 200,000.00 Lempiras up to 1,000,000.00 Lempiras. 0.125 %

• 3)

  For fraction over 1,000,000.00 Lempiras up to 20,000,000.00 Lempiras. 0.0125 %

• 4)

  For fraction over 20,000,000.00 0.005 % Lempiras. Payment shall be made to banks of the National Financial System authorized prior to the granting of the respective certificate. In case projects in operation do not comply with the mitigation measures established by the UGA, it may revoke the environmental permit issued after having notified noncompliance and granted a period of three months for compliance with the measures.

It is established within the environmental measures of the Mitigation Measure Contracts of projects the renewal and maintenance of green areas of sidewalks, turnarounds and medians of the area near to be intervened, shall be presented to the UGA so that the area to which maintenance will be provided is credited to it for the compliance of said measure, which shall be extended an annual Certificate. For the accreditation of renewal and maintenance work performed, the UGA shall assign technical personnel which shall give by means of technical maintenance supervision reports.

The expansion and/or remodeling of projects shall have a cost according to the amount of investment of the expansion and/or remodeling calculated according to the table of Article 55 of this plan of revenues.

The validity of the Environmental Registration Certificates, Environmental Authorization and Environmental Audit shall be three (3) years. The renewal of the aforementioned permits shall be requested four (4) months prior to their expiration for which they shall pay 25% of the value of their permit. The cost of renewal of projects that had expansion and/or remodeling shall pay 25% of the value of their original permit plus 25% of the value of their expansion and/or remodeling permit.

Every project that is subject to an environmental registration certificate, environmental authorization, or environmental audit must mandatorily submit to control and monitoring by the UGA one year after obtaining its environmental permit; after this period it shall have a validity of two years. Said procedure shall be a requirement for the renewal of its respective operating and/or construction permit.

The Municipal Registry of Environmental Services Providers shall be administered by the UGA of the AMDC based on the Procedure Manual for Registration of Environmental Services Providers. The UGA shall open a file for each of the professionals, companies, or laboratories that submit to the registration process. The file shall contain all requested information. Likewise, it shall issue certificates and identification cards that shall be delivered to the (PSA) once compliance with the requirements is verified.

Registration in the Municipal Registry of Environmental Services Providers is carried out in the offices of the Environmental Management Unit. Only those registered in said Municipal Registry shall be accepted as PSA.

At the request of the Construction Control Management, the Environmental Certificate for minor projects of Category 1 shall conduct the procedure at the UGA. The requirements for processing the Environmental Certificate before the UGA of the AMDC are the following: Sketch of the location of the site with respect to the zone. Copy of property document (in case of rental, present rental contract and public deed of origin duly authenticated). Copy of deed of individual merchant or partnership or legal entity when applicable, duly authenticated. Certificate of Compatibility issued by the Construction Control Management of the AMDC (original). Certificate from the Honduran Institute of Anthropology and History (in case it is within the historic district). Copy of construction plans (general plans, plan of each level, sections, and facades) construction plans of the activity to be carried out showing the total area of the land and construction area signed and sealed by Engineer or Architect. Descriptive technical report (where the total area, construction area, and activities to be developed on the land with their materials are reflected). Certificates from National Parks, AMITIGRA, and Forest Conservation Institute authenticated, in case of construction in El Picacho and El Hatillo and surrounding areas. In case of proximity to any sub-watershed of the Central District, submit technical report issued by the Department of Hydrographic Watersheds of the National Autonomous Water and Sewerage Service (SANAA). In case tree cutting is necessary, submit application of the respective format for said procedure.

The placement of advertising banners horizontally that traverse both ends of the streets shall not be permitted, in view that they may cause visual pollution and diminish driver visibility. The violation of the above stipulation shall be sanctioned with fines of two thousand Lempiras (L.2,000.00) for each banner placed, without prejudice to the seizure and final disposition thereof. The Construction Control Management shall be responsible for ensuring compliance with this provision.

A contribution to the Touristic Development of the Capital shall be charged in the amount of seventy-five Lempiras (L.75.00) per stay per occupied room to guests in hotels of the Central District of first, second, and third category. These shall be subject to periodic audits and their collection must be remitted within the first ten days of the following month in which the collection was made, to the institutions of the national banking system in the authorized special accounts. Required hotels must modify their invoices to include this contribution. The funds collected shall be allocated to the strengthening of the Tourist Police, Tourist Information and Care Center, Training of personnel and employees of tourist centers, and any other program or project defined by the Tourism Management and may be coordinated with the National Chamber of Tourism.

OBJECTIVES AND PURPOSES OF THE HISTORIC CENTER. The Historic Center Management has the objective of defending, conserving, rescuing, protecting, and researching the assets that constitute the Cultural Heritage of the Historic Center of the Central District, in order to allow a fair, timely, and efficient application by the Municipal Mayor's Office of the Central District and other entities interested in the powers conferred upon them by Law.

DELIMITATION OF THE HISTORIC CENTER. The limits described in Article One of Agreement Number 527 dated December 20, 1994, issued by the Presidency of the Republic through the Secretariat of Culture and Tourism, denominated Declaratory Agreement of National Monuments of the Historic Center of the Central District and surrounding areas.

It is the responsibility of the Municipal Mayor's Office of the Central District, through the Historic Center Management, to issue favorable or unfavorable rulings on interventions for the construction, remodeling, and demolition of inventoried and non-inventoried buildings within sectors 01, 02, and 06, which comprise the Historic Center of the Central District. Prior to carrying out any conservation, restoration, or intervention work on inventoried buildings; construction, remodeling, or demolition work on real property, as well as the opening of businesses and renewal of operating permits, located within the limits of the so-called HISTORIC CENTER OF THE CENTRAL DISTRICT, the owner or legal representative of the real property or business respectively must present themselves to the Historic Center Management with the respective municipal cadastral key of the plot where it is intended to act, to be informed of the guidelines that shall govern said work and not incur in cases that violate the Management Regulations of the Historic Center of the Central District. Once the above step is completed, the relevant authorization case shall be identified according to the classification of the property in the INVENTORY OF CULTURAL HERITAGE OF THE NATION and guidelines shall be given for each situation. These authorizations shall be extended once the Historic Center Management issues the Project Approval Opinion with respect to the architectural design of the real property, integration with the context, and compatibility of land use according to current zoning. The Construction Control Management and the Citizen Care Management are the entities responsible for the approval and issuance of the respective permits, whose final ruling shall depend on the guidelines for each case, based on this the interested party may begin the work of design and/or planning of the project.

The types of authorizations that must be issued by the Historic Center Management, prior to the corresponding municipal permits, are the following: 1) Authorization for intervention of inventoried and non-inventoried buildings 2) Special Authorizations 3) Authorization for demolition of a Building 4) Authorization for installation of Signs 5) Authorization of compatibility (opening and renewal) 6) Authorization for use of public spaces 7) Authorization for use of auditory publicity 8) Authorization for painting facades of real property.

All construction, modification, expansion, repair, or remodeling of any building within the Historic Center shall be ruled favorable or unfavorably by the Historic Center Management and the permit shall be issued by the Construction Control Management. These administrative acts constitute an indispensable requirement to obtain the Construction, Intervention, and Demolition Permit granted by the Construction Control Management. Any intervention without authorization shall pay a fine of: Inventoried property Lps.10,000, without prejudice to other fines. Must comply with Guidelines according to Management Regulations of the Historic Center. Non-inventoried property Lps.3,000; without prejudice to other fines. Must comply with Guidelines according to Management Regulations of the Historic Center.

For each demolition of buildings carried out within the Historic Center, the procedure shall begin at the Historic Center Management, which shall rule favorably or unfavorably on it, in accordance with the Honduran Institute of Anthropology and History, with the Construction Control Management being the entity responsible for issuing the respective permits, paying for their issuance the following:

• A)

  Three hundred (L. 300.00) for areas smaller than 250 square meters.

• B)

  Eight hundred (L. 800.00) for areas of 250 to 500 square meters.

• C)

  One thousand five hundred (L. 1,500.00) for areas larger than 500 square meters. Lack of Construction Permit shall cause a fine of six percent (6%) of the cadastral value of the property to be demolished. When a demolition is carried out by order of the Municipal Corporation or other authority, the amount established in this Plan of Levies shall be charged, imputable to the property owner, plus added costs.

The exterior facades of inventoried and non-inventoried buildings within sectors 01, 02, and 06 that comprise the Historic Center of the Central District must be painted uniformly with the colors authorized by the Historic Center Management of the Central District, and may not be painted with colors outside the color palette authorized by the Municipal Mayor's Office of the Central District and the Hondureño Institute of Anthropology and History, even if they belong to different owners or are rented by different persons, being strictly prohibited to divide the properties with different colors. A deadline of 15 days after the first notice shall be given to paint the facades of businesses and homes within the Historic Center, being strictly prohibited to cover with paint the characteristic architectural stone elements of our city such as: balconies, cornices, jambs in openings, sills, jambs, brackets, portals, attached columns, keystones, etc., as well as painting advertising on the metal shutters of doors and windows which must be painted entirely in a way that integrates with the building color. Non-compliance with this provision shall result in a fine of five thousand Honduran Lempiras (L. 5,000.00), plus the setting of a deadline to correct the painted facade; canceling said fine at the Historic Center Management. Authorization for facade painting shall be extended at no cost, with the Historic Center Management providing advice in the selection of colors according to the architectural typology of the property and using the colors established in the color palette for the Historic Center.

The Historic Center Management shall be responsible for the regulation of all advertising within the Historic Center of the Central District and shall determine the guidelines and resolve on applications for permits for the installation of signs, advertisements, and propaganda of any kind, granting or denying it directly to the interested party in accordance with the Management Regulations of the Historic Center, where the applicant is obligated to know the guidelines for the installation of signs or advertising announcements prior to their manufacture, for which reason they must address the Historic Center Management to receive the corresponding advice, and once the design of the sign or advertising announcement is approved, they shall be given the final processing of the request at the Historic Center Management for which they shall pay a single time for the installation permit and annually for the renewal of the permit when applicable. For the authorization issued at the Historic Center Management, the amount of three hundred lempiras (Lps.300) per square meter shall be charged. Non-compliance with the guidelines for signs within the Historic Center shall cause a fine according to the Historic Center valuation table. As well as the mandatory immediate removal thereof. SIGN TYPE VALUE PER M2 Luminous Sign 1 face L. 1,950.00 Luminous Sign 2 faces L. 2,100.00 Adhered or Micro-perforated Banners L. 475.00 Individual Letters L. 3,000.00 Painted Metal Sign L. 750.00 Wooden Sign L.1,000.00 The type of sign not mentioned in the above table shall be charged based on a fixed rate of (L.3,000.00) three thousand Honduran lempiras exactly.

The Construction Control Management, with the assistance of the Historic Center Management, shall be responsible for issuing the Certificate of Compatibility for establishments or businesses that require the obtaining of operating permits within the Historic Center. Said certificate shall be issued based on current urban zoning.

It is the responsibility of the Citizen Services Management in special cases to consider for purposes of zoning and land use prior to the issuance of an operation permit, any authorization or recognition issued by the Municipality through its authorized departments.

When the Historic Center Management considers it inopportune to renew the operation permit of a business operating in the historic center, it shall inform the Citizen Services Management in the month of December of the causes or reasons that justify its decision, requesting the non-renewal of the permit. SECTION IV ON THE AUTHORIZATION OF USE OF PUBLIC SPACE

The Historic Center Management shall be responsible for issuing the Authorization for Use of Public Space for the holding of events for purposes of public interest within the limits of the Historic Center, understanding by public spaces the plazas, parks, promenades and other areas of public use. Such authorization shall be issued by the Construction Control Management, upon written request by the interested party and shall be valid only for the event specified therein, without prejudice to the granting of temporary licenses for shows, fairs and others issued by the Citizen Services Management.

The Historic Center Management shall be responsible for issuing the Auditory Advertising Authorization within the limits of the Historic Center, understanding by this the use of loudspeakers, megaphones, sound equipment, horns and similar devices, outside of commercial establishments, businesses, schools, etc., for purposes of commercial promotion of goods or services. Such authorization shall be issued upon written request by the interested party and payment of an amount of three hundred Lempiras (L. 300.00) for each day of duration and in no case shall exceed three (3) consecutive days. This authorization shall be valid for the activity specified therein and shall be issued provided that the sound level does not exceed 50 decibels within a radius of 100 meters. It is prohibited that the ambient sound from commercial establishments be heard outside the limits thereof, and these establishments must take the necessary precautions to isolate the sound of their premises.

In order to create a Special Fund for the sustainability, expansion and maintenance of urban road infrastructure, including the costs of administration and supervision of such services, the following rate is established for the registration of motor vehicles, vans, trailers, semi-trailers and motorcycles: CHARGING STRUCTURE RATE FOR MAINTENANCE OF ROAD INFRASTRUCTURE For vehicles up to year 2008 PRIVATE AUTOMOBILES RENTAL AUTOMOBILES DISPLACEMENT 0-1400 CC 1401-2000 CC 2001-2500 CC > 2501 CC Road Infra. Maint. Rate 370.00 420.00 570.00 680.00 DESCRIPTION TRAILERS, SEMI-TRAILERS and VANS Road Infra. Maint. Rate 495.00 DISPLACEMENT 0-1400 CC 1401-2000 CC 2001-2500 CC > 2501 CC Road Infra. Maint. Rate 565.00 665.00 765.00 905.00 MOTORCYCLES DESCRIPTION Road Infra. Maint. Rate 195.00 For vehicles from year 2009 to date PRIVATE AUTOMOBILES RENTAL AUTOMOBILES DISPLACEMENT 0-1400 CC 1401-2000 CC 2001-2500 CC > 2501 CC Road Infra. Maint. Rate 420.00 470.00 620.00 730.00 DESCRIPTION TRAILERS, SEMI-TRAILERS and VANS Road Infra. Maint. Rate 800.00 MOTORCYCLES DESCRIPTION 0-500 CC >501 CC Road Infra. Maint. Rate 140.00 1,000.00 The amount of the rate shall be paid proportionally according to the date on which the vehicle is settled or acquired. Payment of this rate must be made in authorized financial institutions in the special account created for such purposes, within the first fifteen (15) days of registration with the Executive Revenue Office (DEI); in the first year it shall be made at the moment of importation, whether by the importer or by the buyer. From the second year onwards, it shall be made in the national banking system.

New and used vehicles shall pay, upon their first entry into the country, zero point five percent (0.5%) on the CIF value plus the rights and other charges caused by importation, at the moment of settlement. This registration rate shall apply to the invoice price of sale in the market when the vehicle is acquired in the domestic market. In both cases, the resulting value shall not be less than one thousand Lempiras (L 1,000.00). DISPLACEMENT 0-1400 CC 1401-2000 CC 2001-2500 CC > 2501 CC Road Infra. Maint. Rate 650.00 850.00 1,100.00 1,700.00 Payment of this rate shall be annual for a consecutive period of five (5) years, after which the rates established in the previous article shall apply. The amount of the rate shall be paid in full, regardless of the date on which the vehicle is settled or acquired. Payment of this rate must be made in authorized financial institutions in the special account created for such purposes. In the first year, payment shall be made at the moment of importation, whether by the importer or the buyer. From the second to the fifth year, it shall be made in the national banking system. The following are exempted from payment of this rate calculation modality: a) Vehicles registered with rental plates, which obtain the respective certificate of operations. b) New motorcycles whose displacement is equal to or less than 500 CC.

At the moment of paying the registration fee, the Municipality shall offer for optional purchase an environmental sticker valued at fifty Lempiras (L.50.00) and whose amount must be deposited in a special account intended exclusively for the protection and management of the AMITIGRA Forest Reserve, the only national park declared by the Central District and also the main source of water supply for Tegucigalpa. If the environmental sticker is not purchased, the Municipality shall always provide the normal vehicle and motor registration sticker.

Non-compliance with timely payment of this rate shall be sanctioned with the payment of a fine of four hundred Lempiras (L 400.00) for each month of delay, totaling a maximum of two thousand Lempiras (L 2,000.00) per year, being cumulative in subsequent years. In the case of motorcycles, a fine of fifty Lempiras (L 50.00) per month of delay shall apply, totaling a maximum of two hundred Lempiras (L 200.00) per year, being cumulative in subsequent years.

The Cadastral Management Service shall be charged as follows: a) Issuance of general map of the Municipality Urban Zone scale: 1:5,000...........................L 1,000.00 b) Issuance of general urban zone map Scale: 1:10,000................................................L 1,000.00 c) Issuance of sectional maps scale various..........L 600.00 d) Issuance of block map scale: 1:1,000.................L 600.00 e) Issuance of topographic sheets scale 1:1,000 or other..................................................................L 400.00 f) Issuance of tracing sheets of aerial photographs scale: 1:1,000................................L 400.00 g) Issuance of urbanization plans...........................L 1,000.00 h) Certifications for property appraisals, limits and boundaries................................L 600.00 i) Certification of value per square meter of land for construction.............................L 300.00 j) Certification of possession or non-possession of real property or information requested by the taxpayer regarding the registration of their properties............................L 150.00 k) Certification of location for permits procedures for construction and/or business operations.........................L 150.00

The Construction Control Management may issue a certification that accredits that the taxpayer has a project that complies with all requirements to be approved for purposes of banking procedures exclusively, establishing therein the characteristics of the project and the cost of work according to the cost table or budget presented by the applicant. Such certification does NOT constitute authorization to begin the requested construction works. In the event that work is begun without the respective construction license, the sanctions established in this Plan of Levies shall be applied. The certification shall have a cost of one hundred fifty lempiras (L. 150.00)

All small businesses shall be exempt from the annual payment for renewal described above, when their sign does not exceed two square meters (2.00 M²). Such businesses are established in the following list: LIST OF SMALL BUSINESSES No. DESCRIPTION 1 Convenience stores 2 Beauty salon services 3 Sweets and light food services (kiosks) 4 Internet services 5 Sale of meats and by-products (butcher shops) 6 Cafeterias 7 Corn milling services and other basic grains (mills) 8 Food and beverage services (non-alcoholic) snack bars 9 Apparel manufacturing except leather and hide articles 10 Wooden article factories (carpentries) 11 Repair of domestic electrical appliances 12 Tire and pneumatic repair services (tire shops) 13 Food services (dining facilities) 14 Footwear and other leather article repair 15 Upholstery services 16 Sale of fresh fruits, vegetables and greens (vegetable shops) 17 Barbershops and/or hairdressing services 18 Sale of meringues 19 Photocopy and stationery services 20 Miscellaneous and Accessories The Municipality may authorize the placement of advertising in revitalization projects of areas of public use, through the Construction Control Management who shall determine the conditions, design and execution thereof, being in this case and banners the advertising elements that the Construction Control Management may approve.

The Construction Control Management shall provide alignment, review and approval services for plans established in the Transitional Standards for Zoning Update and Standards for Subdivision, Works and Land Use in the Central District, in accordance with the following rates:

• a)

  For the issuance of permit for urbanization, a rate of 1% (one percent) shall be paid of the value resulting from multiplying the lot area by an amount of four hundred Lempiras (L 400.00) per square vara of useful sellable area.

• b)

  For the purpose of modifications and/or subdivisions to already approved projects, the urbanizer shall pay the equivalent of one hundred percent (100%) of the value resulting from the operation carried out according to the preceding section of this article, paying only the area to be modified and/or subdivided.

• c)

  In the case of social interest urbanizations, a rate of one percent (1%) shall apply of the value resulting from multiplying the lot area by an amount of four hundred Lempiras (L 400.00) per square vara of useful sellable area.

• d)

  For the purpose of modifications and/or subdivisions to already approved social interest projects, the urbanizer shall pay the equivalent of one hundred percent (100%) of the value resulting from the operation carried out according to the preceding section of this article, paying only the area to be modified and/or subdivided.

• e)

  In the case of condominiums, a rate of one point two percent (1.2%) shall be paid of the value resulting from multiplying the total project area by an amount of four hundred Lempiras (L 400.00) per square vara (all areas of lots, streets, green areas, reserve, reforestation, etc. apply)

• f)

  For the purpose of modifications and/or subdivisions to already approved condominium projects, they shall pay the equivalent of 100% (one hundred percent) of the value resulting from the operation carried out according to the preceding section of this article, paying only the area to be modified and/or subdivided.

Regarding the transfer of areas in the case of urbanizations. Once the project is approved, the rate is paid and the urbanization permit is issued by the Construction Control Management, the interested party shall have a period of six (6) months to follow the following procedure: The interested party must present to the Construction Control Management and Land Access Management the deed containing the transfer of the areas that correspond to AMDC, in accordance with the percentages established in the Standards for Zoning Update and Standards for Subdivision, Works and Land Use in the Central District, of the area to be urbanized and/or subdivided for the purposes of green areas, streets and social facilities. The Construction Control Management and Infrastructure Management shall conduct a technical review thereof, verifying compliance with the previously established areas, street dimensions, material resistance, asphalt or concrete testing, etc. As well as proper delimitation and signage of both green areas and social facilities; forwarding to Legal Services Management, which shall make legal assessments of the document, so that it forwards it to the Honorable Municipal Corporation for its respective acceptance. Once the areas are titled and registered in favor of the Mayor's Office, the Municipal Secretary shall notify the following: Construction Control Management, Cadastral Management and Land Access Management, passing to permanent control and maintenance of the Environmental Management Unit, likewise it shall be reported to the Finance Office and Management for its registration in the General Balance Sheet of the Mayor's Office. In case of modification of any of the aspects approved in the project, the interested party must, prior to executing them, submit their corresponding request, otherwise they shall incur a fine equivalent to two hundred percent (200%) of the value of the modification permit. Once the request is entered, this shall initiate the process described above in the paragraphs of this chapter. Non-compliance with the above described shall be sanctioned with a fine of 200% of the value of the Urbanization Permit.

All construction, enlargement, legalization, change of use, remodeling or restoration, demolition, earth movements, excavations or fills, and/or any complementary work of any building or structure within the municipal term shall be authorized by the Construction Control Management. The Laws and regulations applied by other institutions that require authorization (SERNA, SANAA, ENEE and others of special regime) shall be applied; the taxpayer shall not be able to begin construction work as long as they do not obtain such authorizations even if they have the construction permit issued by the Construction Control Management; failure to comply with this provision shall result in the revocation or cancellation of the authorization issued. For the issuance of construction permits, the Construction Control Management shall evaluate the technical aspects contained in the Transitional Standards for Zoning Update and Standards for Subdivision, Works and Land Use in the Central District. When it comes to buildings of colonial and historic architecture, a prior favorable opinion from the Historic Center Management shall be required. Once the documentation and final plans are received at the Construction Control Management, it shall issue the corresponding permit, prior to payment that the interested party must make according to what is established in the construction cost table of this Plan of Levies, the foregoing without prejudice to the payment of fines when these are applicable. To determine the total cost of the work, the calculation must be made based on the work cost table, this being the minimum value. The interested party according to their budget may declare under oath a value greater than the minimum established in the tables and to this value shall be applied the corresponding percentage of the rate according to their request. In the event that the total cost of work is less than what is established in the work cost table, the Construction Control Management shall apply the amount assigned in the table. The rates corresponding to permits issued by the Construction Control Management must be paid in financial system institutions authorized by the Mayor's Office and shall be made according to the following work cost tables: WORK COST TABLE TYPE DESCRIPTION UNIT COST RATE ONE OR TWO STORY BUILDINGS For all one or two story buildings regardless of their use M² L7,500.00 1.00% THREE OR MORE STORY BUILDINGS For all three or more story buildings regardless of their use M² L8,500.00 1.00% SINGLE-FAMILY HOUSING Housing up to 60.00 m² M² L6,250.00 0.40% Housing with area from 60.01 to 100.00 m² M² L6,250.00 0.50% Housing with area from 100.01 to 200.00 m² M² L6,250.00 0.70% Housing with area from 200.01 to 300.00 m² M² L6,750.00 1.00% Housing with area greater than 300.01 m² M² L7,500.00 1.00% WAREHOUSE BUILDINGS Metal structures rigid frame type or metal framework on load-bearing walls, sheet metal roof. A. One story, with maximum height of 6.00 meters M² L3,000.00 1.00% B. One story, at a height greater than 6.00 meters M² L3,000.00 1.00% C. Two or more stories M² L3,000.00 1.00% BUILDINGS FOR INDUSTRIAL FACILITIES Metal structure, wood frameworks, trusses or stringers, sheet metal roof and load-bearing walls. A. One story with maximum height of 6.00 meters M² L3,000.00 1.00% B. One story, at a height greater than 6.00 meters M² L3,000.00 1.00% C. Two or more stories M² L3,000.00 1.00% OTHER Gas stations M² L8,500.00 1.00% Gate houses (booths) M² L8,500.00 1.00% Multi-use halls M² L8,500.00 1.00% Basements M² L8,500.00 1.00% Pedestrian bridges M² L8,500.00 1.00% OTHER CONSTRUCTION ACTIVITIES Brick wall raising M² L900.00 1.00% Block wall raising M² L700.00 1.00% Retaining wall M³ L3,000.00 1.00% Stone wall raising M² L2,000.00 1.00% Prefabricated wall raising M² L1,500.00 1.00% Wall raising of other materials M² L600.00 1.00% Sheet metal roofing with M² L1,200.00 1.00% metal or wood structure Concrete roofing M² L2,250.00 1.00% Change from sheet metal to sheet metal roofing M² L800.00 1.00% Covered parking with sheet metal M² L2,000.00 1.00% Covered parking with concrete slab M² L3,500.00 1.00% Excavations and/or earth movements M³ L250.00 1.00% Demolition M² L250.00 1.00% Exterior work, landscaping M² L750.00 1.00% Casting of concrete, asphalt pavements, private uncovered parking M² L1,500.00 1.00% Pools M³ L7,500.00 1.00% Cisterns M³ L4,000.00 1.00% Gates for gate houses ML L2,500.00 1.00% REMODELINGS, MODIFICATIONS OF APPROVED PROJECTS AND/OR CHANGES OF USE Social interest housing (up to 45.00 m²) L100.00 Remodeling and changes of use greater than 45.00 m² and up to 200.00 m² (single-family, multifamily housing and/or non-residential uses) 20% of the value of the construction license calculated on the total area of remodeling Remodeling and changes of use greater than 200.00 m² (single-family, multifamily housing and/or non-residential uses) 30% of the value of the construction license calculated on the total area of remodeling EXTENSIONS In the case of social interest housing, the extension of the permit shall pay 10% of the value of the license In other cases, the extension after the expiration date of the permit shall pay 10% of the value of the license with a minimum of L.150.00 The costs per square meter in the present "work cost" tables were provided by the Honduran Chamber of Industry and Construction (CHICO), which must update and publish such costs quarterly through an informational bulletin in a national circulation newspaper or by the means it deems appropriate. The Municipal Mayor's Office of the Central District may review and update the costs per square meter according to official publications. For legal purposes, CHICO, prior to publication of cost updates, shall send official communication to the Mayor's Office with the new values, this with the purpose of timely homologating the amounts to be charged. The construction area shall be understood as the covered area per level without including eaves and drainage channels. However, overhangs, balconies, terraces, garages and other covered or roofed surfaces shall be included for such calculation. The costs per square meter and the respective rate in the cases established in the work cost table shall be the result of the sum of the existing construction plus the new area to be constructed. Once the above calculation is made, the rate to be charged shall be only for the square meters to be constructed; the existing area shall not be charged.

The owner of the construction and/or subdivision of lots (in already urbanized areas) shall pay, only once, for the purpose of assignment of nomenclature to the dwelling or building, the amount of seven hundred fifty Lempiras (L750.00). The owner shall be obligated to have the respective plate made, following the guidelines established by the "Department of Urban and Private Nomenclature" dependent on the Construction Control Management, which shall issue the respective payment order.

SUPERVISION OF URBANIZATIONS. All natural or legal persons who were authorized urbanization projects during the last five years and who have not complied with the execution schedule approved at that time or have not carried out the corresponding transfer of green areas in favor of the Municipality through a public deed duly registered in the Property Registry, and continue performing construction work to date, shall be subject to an audit by the Construction Control Department, to determine the values for supervision purposes, and may not continue with pending procedures nor initiate a new one, if the resulting values have not been paid. The monthly amount to be paid shall be thirteen thousand lempiras (L13,000.00), so the audit shall reflect the number of months that work has been performed outside the authorized and paid schedule, and likewise the months that the developer will require to finalize the urbanization project, the result being the months that work has been performed outside schedule plus the months requested by the interested party to complete the project, multiplied by the amount indicated in this paragraph.

Supervision of the Construction Control Department shall encompass the following aspects: a) Compliance with approved right-of-way requirements. b) Compliance with aspects detailed in the approval opinion. Once the project is approved, the rate is paid, and the urbanization permit is issued by the Construction Control Department, it shall send a copy of the approved plans of the project and technical execution memoranda to the Infrastructure Department, which shall provide follow-up throughout the entire process so that the work guarantees the required quality. At the end of the process, it shall be governed by what is established in article XX of the area transfer section established in this fee plan. The Infrastructure Department shall be responsible for supervising the urbanization work related to: Construction plans and technical execution memoranda. For supervision purposes, the Construction Control and Infrastructure Departments shall establish the procedures they deem appropriate for its execution.

For non-compliance with current regulations, sanctions shall be imposed in accordance with the following table. The application of fines and sanctions is made without prejudice to the obligation to comply with the corresponding construction permit procedures. SANCTIONS TABLE CONSTRUCTION CONTROL DEPARTMENT ACTIVITY / INFRACTIONS SANCTION OBSERVATIONS A. Submitting false data by the owner and/or professional in forms, plans, reports, opinions or any other document that is part of a file. The Judge of the Municipal Department of Justice shall proceed to halt the work. B. Denying access to personnel of the Construction Control Department properly identified during business hours, provided that a license has been granted on the property and the same is current. As well as all those properties that have construction processes. The Judge of the Municipal Department of Justice shall sanction with the corresponding fine. C. Not returning permits in time when they have expired. Five percent (5%) of the license cost. D. Not executing work in accordance with authorized plans. Urbanizations, constructions, etc. A fine of two hundred percent (200%) of the permit cost of the modified area shall be applied. E. Not placing in a visible place towards the outside the identification sign containing the license number that covers the work being performed. Five percent (5%) of the license cost. G. Occupying a building without prior obtaining a certificate of completion of work. Twenty percent (20%) of the license cost. H. Not complying with orders to repair or demolish unsafe or dangerous buildings. When a demolition is carried out by order of the Corporation or other authority, the amount established in this Fee Plan shall be charged, imputable to the owner of the property plus the costs incurred by the Municipality in executing the repair or demolition, which shall be determined by the Construction Control Department. I. Depositing materials on public property without complying with current regulations. Twenty-five percent (25%) of the license cost. In the case of Subdivisions, Urbanizations, and Commercial properties Twenty-five percent (25%), for recurrence. In no case may the fine imposed exceed L. 20,000.00 twenty thousand lempiras only for single-family and multi-family housing. J. Changing the use of a building without the corresponding permit issued by the Construction Control Department. Twenty percent (20%) of the license cost. K. Using public property to mix materials and/or perform any construction-related activity. Twenty percent (20%) of the license cost, in no case may the fine imposed exceed twenty thousand lempiras (L 20,000.00). When construction-related work is performed on public property, the amount established in this fee plan shall be charged, imputable to the owner of the property plus the costs incurred by the Municipality for repair of public property, which shall be determined by the Construction Control Department. M. Failure to provide written notice by the owner or executor that the latter has ceased to serve as such and to inform of the new executor. Work stoppage. N. Starting a construction without the respective authorization of the Construction Control Department. Two hundred percent (200%) of the license cost. Without prejudice to the stoppage and the sanction, when the need for the presence of the municipal police is determined to prevent work from resuming until authorization is granted, the offender shall additionally pay an amount of up to one thousand lempiras daily for each member of the Municipal Police assigned, according to the infractor's financial capacity, the size of the work, and the seriousness of the violation. Q. Damaging or affecting public property (sidewalks, streets, planters, flower beds, storm drains, etc.) and existing infrastructure. One hundred percent (100%) of the cost of the damaged or affected work. When damage is caused to public property, the amount established in this fee plan shall be charged, imputable to the owner of the property plus the costs incurred by the Municipality in repairing damage caused to public property, which shall be determined by the Construction Control Department. R. Not removing barriers, scaffolding, and installations of any security system from public property upon expiration of the license, or if the project is not carried out. Twenty-five percent (25%) of the license cost. In no case may the fine imposed exceed twenty thousand lempiras (L. 20,000.00).

To natural or legal persons who initiate construction work without the respective permit, understanding as work for this purpose what is established in the regulation, the fine established in the current Fee Plan shall be applied. Once the value is determined, it may be applied in the following manner: the interested party must prove to the Municipal Department of Justice the payment corresponding to the construction permit issued by the Construction Control Department as an essential requirement for the benefit to be granted. Once recognized and having paid the corresponding percentage of the fine, the respective permit shall be issued. Natural or legal persons to whom the corresponding fine has been imposed for initiating work without the respective permit before the entry into force of this regulation shall enjoy the same benefits for the persons related in the preamble of this article. The notification date for the calculation of days and their respective benefit percentage shall correspond to the day of entry into force of this regulation, applicable only to cases where a fine was imposed before the entry into force of this regulation. They shall pay twenty-five percent (25%) of the fine if they accredit payment of the permit within ten (10) days counted from the notification of the fine imposed. Those who accredit payment of the construction permit in the period from day 11 to day 20 counted from the notification of the fine imposed shall pay forty percent (40%). Those who accredit payment of the construction permit in the period from day 21 to day 30 counted from the notification of the fine imposed shall pay seventy percent (70%). It is understood that the aforementioned periods are established in business days. The provisions contained in this article are applicable until June 30, 2013.

Those persons who, as of the date of entry into force of this regulation, have paid the amounts corresponding to the rate for license or construction permit and the percentage of the fine required to access payment plans, and those who have already subscribed to their payment plans, shall enjoy the same benefit, being able to free themselves from the rest of the obligation in accordance with the date they present themselves to subscribe the respective discharge in the Municipal Department of Justice as established in the previous article. Payment agreements that have been executed at a percentage higher than that which would correspond according to the date on which the beneficiary presents themselves to the Construction Control Department shall be considered automatically fulfilled, without this implying any type of refund or credit on the excess.

The Inadequate Construction Program consists of the application of sanctions to natural and legal persons, owners of properties whose work does not conform to the parameters established in the Interim Standards for Updating Zoning and Subdivision Standards, Works and Land Use in the Central District, as well as any other regulations related to construction processes in the Central District. The taxpayer who has built without a license, or does not comply with what is authorized in the license issued by the Construction Control Department, once having entered the Inadequate Construction Program in accordance with its regulations, shall pay the following amounts: Residential Use One percent (1%) of the Work Value, determined by the Construction Control Department, based on the construction cost tables of the current Fee Plan. Non-Residential Use Two point five percent (2.5%) of the Work Value, determined by the Construction Control Department, based on the construction cost tables of the current Fee Plan. Once the work value has been determined, the previously described percentage shall be applied. The result thereof (annual charge) shall be divided into four to determine the quarterly payment amount, which the taxpayer must pay quarterly until exiting the inadequate construction program (according to causes determined in the Inadequate Construction Regulation). In cases of non-residential use work, failure to pay two consecutive quarters shall result in cancellation of the operating permit and temporary closure of the business. Businesses occupying spaces in properties subject to the Inadequate Construction Program shall vacate the property within a period not exceeding thirty days counted from the date the owner of the property entered into default, as registered in the aforementioned program. The Inadequate Construction Program applies without prejudice to the imposition of fines that may be appropriate for initiating work without the respective license or for carrying out unauthorized work when holding a license. For purposes of paying the amounts established in the Inadequate Construction Program, the Construction Control Department shall issue the corresponding payment orders, as established in the regulations.

When a demolition is carried out by order of the Corporation or other authority, the amount established in this Fee Plan shall be charged, imputable to the owner of the property plus the costs incurred by the Municipality, which shall be determined by the Construction Control Department. In case there is a property in ruins that causes damage or harm to pedestrians, poses a risk to neighboring properties, or causes environmental contamination, the Municipality shall proceed ex officio to carry out its demolition, upon prior notification to the owner and exhausting the administrative procedure with an opinion from the Environmental Management Unit. When the property to be demolished is located in the historic center, the Historic Center Department shall be notified. With regard to the sanctions that involve demolition of work, the provisions of the Interim Standards for Updating Zoning and Subdivision Standards, Works and Land Use in the Central District, the sanctions tables contained in this Plan, and the Law on Police and Social Coexistence shall apply.

Public institutions, natural persons, or private legal entities shall pay monthly for the occupation of public property, twenty lempiras (L.20.00) for each pole and for the use of airspace through the installation of cables of any nature, for the provision of electrical, telephone, audio, video, Internet, and other services, ten hundredths (L.0.10) for each linear meter of cabling of any type. The installation of such poles, whether by public institutions, natural persons, or private legal entities, must have prior approval from the Construction Control Department. In the case of the Historic Center, it must have a favorable opinion from the Historic Center Department. In both cases, they must pay three hundred lempiras (L.300.00) per unit in the authorized banking system. Installation of poles without the corresponding authorization shall cause a fine equivalent to one hundred percent (100%) of the permit value. The rate established in the preceding paragraph shall be subject to quarterly payment to be made in financial system institutions authorized by the Municipality, in accordance with the payment notice issued by the Construction Control Department. For this purpose, those obligated must provide to the Construction Control Department a sworn quarterly statement within the first ten (10) days of the months of January, April, July, and October, which shall contain the number of poles, linear meters of cables installed, and the corresponding database with the number of users and the monthly amount they charge. Failure to pay (permit renewal) within the first ten (10) days of the months of January, April, July, and October shall cause a fine equivalent to one hundred percent (100%) of the amount to be paid for said renewal.

Telephone companies are prohibited from constructing new towers or any supporting element and/or installing new communication antennas in public and/or private space within the Municipality of the Central District, and the immediate suspension of those construction and installation activities already begun that do not have the corresponding municipal permit is ordered. Authorizations for these elements issued by AMDC in previous years and/or that are not in operation, when the Construction Control Department deems it necessary and convenient, may revoke the issued authorization and order the removal thereof. The Construction Control Department is instructed not to issue new authorizations or permits, as long as the companies have not obtained the corresponding permits for the towers or any other supporting element and/or for the antennas already installed.

For the Municipality of the Central District to begin the process of recognition of towers or any supporting element and/or telephone antennas and any other type that do not have authorization, the interested party or parties must necessarily provide to the Construction Control Department, as an essential requirement, an inventory of the antennas and/or towers already installed and the specifications that such Department may indicate. Prior to the Construction Control Department issuing the corresponding authorization.

For the legalization of towers or any supporting element and/or telephone antennas and any other type that do not have the proper authorization, the interested party or parties must provide to the Construction Control Department, as an essential requirement, an inventory of the antennas and/or towers already installed and the specifications that such Department may indicate. Prior to the Construction Control Department issuing the corresponding authorization.

For the legalization of towers or any supporting element and/or telephone antennas and any other type that do not have the proper authorization, an authorization request shall be submitted. For this purpose, the Municipality, through the Construction Control Department, shall recognize the point where they are installed without permit and shall issue the corresponding authorization, as long as there is no opposition from natural or legal persons prior to the date of entry into force of this regulation or it is located in areas or zones protected or under a special regime that prohibits it.

For the authorization mentioned in the preceding article, the interested party must pay, as a concept of authorization a single time in favor of the Municipality of the Central District, the sum of sixty thousand lempiras (L.60,000.00), for each tower or any supporting element and/or telephone antenna, if said authorization request and inventories are presented within the first twenty (20) business days, counted from the day following the entry into force of the Plan. Likewise, they shall pay by way of renewal the sum of ten thousand lempiras exactly (Lps. 10,000.00) annually for each element. Interested parties who present the request and inventories outside this period must pay 100% of the permit value. Once the payment order is issued and delivered, the interested party must pay within the following five (5) business days, and payments made outside this date are subject to interest equal to the active rate of the financial system, plus a surcharge of 2% annually calculated on the balance.

Those towers, antennas, and other supporting elements installed that were not legalized within the period established in the previous articles shall be dismantled within a period not exceeding thirty (30) business days. Non-compliance with these provisions shall be sanctioned according to what is established in the Law on Police and Social Coexistence. Likewise, the Municipality reserves the right to remove the towers and/or antennas, whose costs and risk of removal are borne by the offender, without prejudice to the cancellation of the company's operating permit and to exercising the civil and criminal actions that correspond.

It is the exclusive responsibility of the Municipality to authorize the breaking of streets, sidewalks, bridges, and other public property. The authorizations shall cause payment of the following rates:

• a)

  One hundred lempiras (L100.00) per M² or fraction, in dirt streets.

• b)

  Two hundred lempiras (L200.00) per M² or fraction, in brick paved streets.

• c)

  Two hundred lempiras (L200.00) per M² or fraction, in brick paved streets.

• d)

  Two hundred twenty-five lempiras (L225.00) per M² or fraction, in river rock or stone streets.

• e)

  Two hundred fifty lempiras (L250.00) per M² or fraction, in asphalt concrete streets.

• f)

  Two hundred fifty lempiras (L250.00) per M² or fraction, in hydraulic concrete streets.

• g)

  Two hundred lempiras (L200.00) per M² or fraction, in sidewalks of any material.

• h)

  Two hundred lempiras (L200.00) per M² or fraction, in improved green area.

• i)

  Fifty lempiras (L50.00) per ML or fraction, in curbing. The Construction Control Department shall authorize the breaking of streets, with the mandatory requirement that the interested party attach to the request the certification issued by the National Autonomous Service of Aqueducts and Sewers (SANAA) approving the service, when applicable. The permit shall be delivered prior to payment of the rates approved in this Plan. The breaking of streets and sidewalks must be repaired with the same quality of material used in the street or sidewalk, leaving them in equal or better conditions than the original. Persons requesting the permit for breaking streets, avenues, and sidewalks shall deposit a bond or bank guarantee equivalent to three and one-half times (3½) the total cost of the repair (value calculated per square meter). Once the corresponding permit is issued, the Construction Control Department shall forward the complete file with all its records to the Infrastructure Department, which shall provide follow-up in the process to ensure that the public property is left in equal or better conditions. If the repair is not done within the time stipulated in the permit, the Municipality shall execute the guarantee and proceed to repair the property. The withdrawal of the guarantee must be carried out within a period not less than six (6) months nor more than one (1) year, depending on the magnitude of the break, the type of material existing in the wearing surface, and the hierarchical classification of the affected street. Once it is verified that the repair was performed properly and is in perfect condition. It is understood that when regional distributors, principal streets, sectional streets, local streets, or paved access streets with significant vehicular flow are affected, the guarantee shall obligatorily be delivered after one year from when the street break has been repaired, and its execution does not invalidate the validity of the Commitment Agreement. Those who perform breaking of public property without the respective permit shall be sanctioned with a value equivalent to the bond that should have been filed, without prejudice to immediately executing the repair, paying a value equivalent to the permit that should have been filed, and presenting the bank guarantee. No state institution, whether centralized, decentralized, or deconcentrated, autonomous, or semi-autonomous, shall be exempt from this provision. Special agreements may be celebrated with them on this matter.

Signs, billboards, posters, public notices and advertising and propaganda of any kind, within the municipal area and in the authorized locations, shall pay a one-time fee for the installation permit of the structure as established in the following subsections and annually for the renewal of the permit shall pay the same amount established in the following subsections, being able to cancel this concept through a payment agreement executed exclusively by the Building Control Management, having to pay as a minimum twenty-five percent (25%) of the total amount owed at the time of executing the agreement and the remaining amount within a maximum of twelve months, in no case may it exceed the current fiscal year, having to adjust if necessary the final number of installments to the number of months remaining in the fiscal year when applicable. To guarantee compliance with the obligation (payment agreement) the interested party shall obligatorily issue in favor of the Municipality a bill of exchange for the total value of the debt, this being an indispensable requirement for the execution of the agreements. In accordance with the Regulations for Signs and Billboards in force and the following classification, they shall pay: a) Advertising placed on marquees, awnings and umbrellas of buildings, shall pay annually three hundred Lempiras (L300.00) per square meter or fraction thereof, these must be placed on private property and may extend over the sidewalk as long as it does not exceed half of the same b) Conventional advertising billboards may be placed in private locations inside and outside the urban area and which are located in places different from the property that houses the establishment they advertise and shall pay annually two hundred fifty Lempiras (L.250.00) per square meter or fraction of a meter. In the case of unipolar and luminous billboards and/or signs they shall pay annually three hundred Lempiras exactly (L. 300.00) per square meter or fraction of a meter; and non-luminous shall pay annually two hundred fifty Lempiras (L250.00) per square meter or fraction of a meter, the interested party having to present an insurance policy against third parties once approved. c) Electronic screens shall be paid annually five thousand Lempiras (L.5,000.00) per square meter or fraction of a meter. d) Digital screens shall pay annually two thousand Lempiras exactly (L. 2,000.00) per square meter or fraction of a meter e) Luminous flag-type signs, attached, adhered and of any other type, shall pay annually four hundred Lempiras (L.400.00) per square meter or fraction of a meter. f) For the distribution of flyers fifty Lempiras (L.50.00) for each one hundred. Distribution shall only be permitted in shopping centers, public education institutions and similar ones, prior to authorization by their owner and/or administrator. The lack of a permit generates a fine of three thousand Lempiras (L.3,000.00) for each one hundred flyers or sheets. g) Advertising signs that are installed or painted on motor vehicles that identify the commercial activity to which the company owning the vehicle is dedicated in accordance with the provisions of Building Control Management shall pay annually by vehicle one thousand Lempiras (L.1,000.00) per vehicle. h) Advertising announcements that are installed or painted on motor vehicles that DO NOT identify the commercial activity to which the company owning the vehicle is dedicated shall pay annually two hundred fifty Lempiras (L.250.00) per vehicle. i) The Municipality may authorize the placement of advertising in public space revitalization projects, through the Building Control Management who shall determine the conditions, design and execution thereof, this case and banners being the advertising elements that the Building Control Management may approve. Any other type of advertising in public space must be approved by the Honorable Municipal Corporation. j) For mini billboards it shall be paid annually seven hundred Lempiras (L.700.00) per square meter or fraction of a meter, these shall be permitted only within private properties (mini billboards attached to perimeter walls may not be authorized if they are located over the public roadway as well as no element attached to the billboard that is over the public roadway, outside the property boundary) and the same shall not have a measurement greater than five (5.00) by two point fifty (2.50) meters including all elements of the mini billboard such as the frame, likewise the elements for lighting may extend over public space at a minimum height of three (3.00) meters occupying at most half of the sidewalk and this measurement may not exceed ninety centimeters in any case. No more than three mini billboards shall be permitted per location. k) For advertising on urban furniture and anything that is authorizable in public space, it shall be paid annually three hundred Lempiras (L300.00) per square meter or fraction of a meter (mupis and/or mopis, pedestrian bridges, vehicular bridges, etc.). l) For the installation of inflatable advertising the Building Control Management shall establish the parameters for authorizing the installation), airships, small aircraft or similar, one thousand Lempiras (L1,000.00) per unit shall be paid; the same amount shall be paid per week or fraction of a week in which such advertising is used m) No type of advertising shall be authorized in public space and right of way that is placed on poles, persons in motion or on non-motorized means of transport; advertising elements may be seized without prejudice to the fine imposed which shall be four hundred Lempiras (Lps. 400) per square meter or fraction. n) For announcements or advertising on banners, pendants or banners (made of fiberglass, silicon or any other material) per unit and per week or fraction of a week, three hundred Lempiras (L.300.00) shall be charged; to guarantee their removal the Building Control Management shall not authorize new installations to the interested party without having removed the one previously authorized, the interested party shall remove no later than one day after the expiration of the permit for said banner and otherwise the Building Control Management shall not authorize new requests to the same natural or legal person. They shall only be permitted to be placed vertically in accordance with the guidelines established by the Building Control Management. n) Advertising of any commercial activity, adhered, painted or flag-type occupying the business or in places of public entertainment, shall be charged annually two hundred Lempiras (L.200.00) per square meter or fraction of meters.

It is prohibited to fix advertising or propaganda on poles and walls within the limits of the Historic Center using any type of adhesive. Likewise, it is strictly prohibited within the cadastral sectors comprising the area of the Historic Center, the placement of advertising on building facades, public lighting or telephone poles or on any other urban equipment, such as: telephone booths, garbage deposits, bus and taxi stations, etc. For the installation of any signs or advertising announcements in the Historic Center area, prior authorization must be requested, to the permit extended by the Building Control Management, the approval authorization of the Historic Center Management. Luminous signs, electronic screens or similar elements shall not be permitted. The violation of the above established shall cause a fine of ten thousand Lempiras (L.10,000.00) as well as the obligation of immediate removal thereof.

All small businesses shall be exempt from paying the annual renewal fee described above, when their sign does not exceed one point five square meters (1.5 M²). These commercial establishments are established in the following list: LIST OF SMALL BUSINESSES No. DESCRIPTION 1 Small grocery stores 2 Beauty salon services 3 Candy and light food services (small stands) 4 Internet services 5 Meat sales and by-products (butcher shops) 6 Cafeterias 7 Corn grinding and other basic grain services (mills) 8 Food and beverage services (non-alcoholic) snack bars 9 Manufacture of clothing articles except those made of skin leather 10 Wood article factories (carpentry shops) 11 Repair of domestic use electrical appliances 12 Tire and pneumatic repair services (tire shops) 13 Food service (dining halls) 14 Shoe and other leather article repair 15 Upholstery services 16 Sales of fresh fruits, vegetables and greens (produce stores) 17 Barber shops and/or hairdressing salons 18 Sales of meringues 19 Photocopy and stationery services 20 Miscellaneous and Accessories Any activity of companies considered as microenterprises, simple accumulation enterprises and subsistence enterprises, in accordance with the law and what is established by the Building Control Management.

With respect to unipolar billboards that are already installed, the Building Control Management may legalize their installation with the characteristics and conditions with which they are installed, as long as they comply with zoning parameters. To this type of legalizations that are obtained in the time established in the following article, the amount of fines, surcharges and interest generated by the installation of billboards without authorization and the fine imposed for not having paid in a timely manner the renewal of the corresponding permit and those complete requests that being subject to the imposition of the fine are filed and resolved during the time established in the following article shall be waived.

Taxpayers, whether natural or legal persons, owners (the owner of the property, the company owning the billboard or the advertiser, shall be jointly and severally liable) of unipolar billboards installed within the Central District may avail themselves of this procedure and therefore the benefit, who process their permit and make payments of all outstanding years including 2010, with the amounts established in this Plan of Tax Measures, which shall be applied as follows:

• a)

  Payment of twenty-five percent (25%) of the fine from day one (1) to forty-five (45).

• b)

  Payment of fifty percent (50%) of the fine from day forty-six (46) to seventy (70).

• c)

  Payment of seventy-five percent (75%) of the fine from day seventy-one (71) to ninety (90). The foregoing terms shall be understood to be counted from the day following the publication of this Plan of Tax Measures and shall be calculated in business days.

Those persons who as of the effective date of this Plan of Tax Measures had paid the amounts corresponding to the tax for license or installation permit and the percentage of the fine required to access payment plans and those who as of that date had already executed payment plans, shall enjoy the same benefit, being able to free themselves from the rest of the obligation in accordance with the date they present themselves to execute the respective discharge to the Building Control Management as established in the preceding article. The payment agreements that have been executed in a percentage greater than that which would correspond in accordance with the date on which the beneficiary presents themselves to the Building Control Management shall be automatically considered fulfilled, without this implying any type of refund or credit on the excess.

GENERAL PROVISIONS AND SANCTIONS: The location or distribution of any type of signs or written advertising is subject to the following:

• a)

  The Building Control Management shall be responsible for regulating all advertising within the Municipality, who shall determine the guidelines to follow, including the application of restrictions in areas under special control for environmental, cultural, historical, comfort, decoration and safety reasons. In cases of non-compliance with current regulations the Building Control Management shall report to the Municipal Justice Department who through the unit created for that purpose shall proceed to execute the removal of the sign or billboard at the cost of the violator, without prejudice to the imposition and corresponding payment thereof.

• b)

  Billboards are subject to annual payment which shall be made in institutions of the national financial system authorized by the Municipality, in accordance with the payment notice issued by the Building Control Management. Responsibility for any irregularity, and payment for the installation and/or renewal of billboards and/or is joint and several among the advertiser, advertised company and owner of the land where the billboard and/or sign is located. It is understood that the issuance of the permit for installation of advertising billboards shall be the exclusive faculty of the Building Control Management.

• c)

  For the renewal of all types of advertising elements, all natural or legal persons are obliged to provide to the Building Control Management a sworn statement of the number of signs, billboards and all types of advertising elements that they have installed in the Central District (inventory), within a maximum period of twenty (20) business days from the effective date of this Plan of Tax Measures. The Building Control Management shall establish the conditions and requirements at its discretion in which said inventory shall be presented. In case of non-presentation within the time limit established above, corresponding sanctions shall be applied and its removal and destruction shall proceed.

• d)

  Prior to issuing the billing for payment of the Industry, Commerce and Services Tax, the Revenue and Financial Control Management and/or the AER shall request from the taxpayer a certificate issued by the Building Control Management indicating that the taxpayer is solvent in the payment of signs, billboards, posts, cables and any other type of element installed on or over public roadway or within private property.

• e)

  The lack of authorization for installation and/or renewal in the times established in the plan of tax measures shall generate a fine of 100% of the permit or its renewal, this fine shall be applied to both the company owning the carrying element and the company being advertised.

• f)

  Every billing request for payment of permits, renewals, opinions and other services of the Building Control Management whose requests have been filed in previous years shall be calculated and issued based on this Plan of Tax Measures.

• g)

  In the case of companies that advertise without the respective permit, the Building Control Management shall notify said non-compliance granting a period of five days (5) for it to present the corresponding installation permit, in case of presenting it shall be subject to the percentages established in this plan of tax measures, in which the date of its payment shall depend for the waiver of the corresponding percentage, if it does not do so the sanction of one hundred percent 100% described above shall be imposed, it shall proceed to its removal and without prejudice to the cancellation of the corresponding operating permit of the advertising company and the business being advertised.

• h)

  The installation of signs, billboards and others without the corresponding permit shall cause a fine equivalent to one hundred percent (100%) of the value of the permit, without prejudice to removal in case of being located in non-permitted locations. Late renewal shall cause a fine equivalent to one hundred percent (100%) of the value of the renewal.

• i)

  The installation of signs and advertising billboards without complying with the technical and safety specifications contained in the corresponding installation and/or renewal permit shall be sanctioned with a fine equivalent to fifty percent (50%) of the value of the installation permit without prejudice to the corrections that the violator must make.

• j)

  The distribution of advertising and/or written publicity in violation of the laws, morality, good customs, or that does not include information about its origin or person responsible for its distribution shall not be permitted. In case of violation of the above the advertising and/or publicity shall be seized and those responsible shall be sanctioned with a fine of three thousand Lempiras (L.3,000.00), without prejudice to the legal responsibilities that may be applicable.

• k)

  It is strictly prohibited within the cadastral sectors comprising the area of the Historic Center, the placement of advertising on building facades, public lighting or telephone poles or on any other urban equipment, such as: telephone booths, garbage deposits, bus and taxi stations, etc. For the installation of any sign or advertising announcement in the Historic Center area, prior authorization must be requested, to the permit extended by the Building Control Management, a certificate of approval from the Historic Center Management. Luminous signs, electronic screens or similar elements shall not be permitted. The violation of the above established shall cause a fine of ten thousand Lempiras (L.10,000.00) as well as the obligation of immediate removal thereof.

• l)

  The amounts that are paid for permit tax and/or renewal concepts and these are not used cannot be used in other requests. At no time shall this municipality return the payment made for the installation permit of advertising either because the beneficiary had problems in not being able to install the authorized advertising or because the same is removed before the validity of the permit held by the interested party ends.

• m)

  The Building Control Management may approve the installation of two or more unipolar signs regardless of the separation distance that exists between them as long as the property on which the installation is intended the commercial activity being advertised is developed. The maximum permitted height of the unipolar sign shall be nine (9.00) meters.

• n)

  The Building Control Management may authorize the installation and renewal of fixed, mobile electronic screens as well as mobile billboards, prior to compliance with the requirements that said management establishes through the respective form. In the case of mobile electronic screens and mobile billboards they must present a favorable opinion from the National Traffic Department or the Road and Transport Department of the Municipality.

(FINAL PROVISIONS): SANCTIONS AND MANDATORY COMPLIANCE No governmental, autonomous or decentralized institution, natural or legal person that is exempt from payment of work license tax; may authorize or initiate the construction of works without the approval of the Building Control Management, otherwise the sanctions and fines established in the Effective Plan of Tax Measures shall be applied to them.

Those natural or legal persons who as of the effective date of this Plan of Tax Measures had outstanding debts corresponding to the tax for work license, said amount shall be transferred to collection on any tax administered by the Municipal Municipality.

Any procedure presented before the AMDC, in which certifications or other documents issued by the municipality or by other institutions where the validity of the same is not established, shall be presumed that said validity shall be one calendar year or shall expire on December 31 of the year of issuance of the document. CHAPTER X TAX FOR MITIGATION OF VEHICLE IMPACTS ON PUBLIC SPACE OF THE CENTRAL DISTRICT SINGLE SECTION

The Tax for carrying out the Road Impact process is created. It is the administrative tax per trip to be paid by the interested party for carrying out the road impact process, established in the table below. The aforementioned tax shall serve to finance the administrative cost of processing the file, carrying out vehicle counts and other road studies, calculating the official cost of road works and supervising them, regardless of whether the mitigation is at the interested party's own expense or through the Municipality. Likewise, in the case where the process is carried out through road impact mitigation through the Municipality, a Proportional Amount for Road Impact (MPIV) shall be charged which shall be calculated based on the following table, according to the proposed use. TRIP ATTRACTION AND GENERATION FIGURES LAND USE TRIPS GENERATED PER EACH 100.00 M² TAX PER TRIP MPIV PER TRIP LAND USES WITH LOW IMPACT Warehouse 0.13 L.750.00 L.1,000.00 Officerehouse 0.55 L.750.00 L.1,000.00 Maquila or other mechanized industry 0.80 L.750.00 L.1,000.00 Housing 1.01 L.750.00 L.1,000.00 Hospital 1.30 L.750.00 L.1,000.00 General office 1.68 L.750.00 L.1,000.00 LAND USES WITH MEDIUM-LOW IMPACT Hotel 2.44 L.250.00 L.750.00 General commerce 2.82 L.250.00 L.750.00 Secondary school 3.47 L.250.00 L.750.00 LAND USES WITH MEDIUM IMPACT Primary school or others 5.05 L.150.00 L.350.00 Medical clinic 5.58 L.150.00 L.350.00 Gymnasium or other group recreation areas 6.20 L.150.00 L.350.00 Cinema or other areas with seated spectators 6.63 L.150.00 L.350.00 LAND USES WITH MEDIUM-HIGH IMPACT Restaurant 8.06 L.100.00 L.200.00 Supermarket 9.29 L.100.00 L.200.00 Convention centers or other group activities or live entertainment spectacles 11.10 L.100.00 L.200.00 University 13.98 L. 100.00 L. 150.00 LAND USES WITH HIGH IMPACT Convenience store 22.23 L. 50.00 L. 100.00 Fast food restaurant 28.33 L. 50.00 L. 75.00 Bank 32.12 L. 35.00 L. 75.00 All figures are expressed in trips per rush hour for each one hundred square meters (100.00m²) of useful area dedicated to the land use indicated, understanding for this purpose what the current regulations establish. In case more than one land use can be chosen, the calculation of each use shall be performed independently to determine the total amount. In case the land use is not listed in the table, the Unit for Mitigation of Impacts to Public Space shall determine the land use with the characteristics most compatible to one of the uses already included in the list.

A municipal account shall be created, in which contributions shall be received for road mitigation and corresponding tax measures for the road mitigation process intended exclusively for financing road works and the operation of the Unit for Mitigation of Impacts to Public Space.

The Municipal Mayor is authorized to approve through Agreement the corresponding regulatory policy for this tax. CHAPTER XI PERMIT FOR EXTRACTION OR EXPLOITATION OF RESOURCES

Without prejudice to what is established in this Plan, the Municipal Environmental Management Unit shall authorize the Permit for Extraction or Exploitation of Resources in accordance with the following provisions:

• a)

  For the permit for manual exploitation of material referred to in the activity described in Article 33 of this Plan of Tax Measures, ONE HUNDRED LEMPIRAS MONTHLY (L.100.00) shall be paid without prejudice to the prohibition of extracting sand and stone from the bed of rivers within the urban perimeter of the cities of Tegucigalpa and Comayagüela.

• b)

  The use of explosives is not permitted to develop this activity unless the interested party demonstrates that their use will not endanger the safety of persons and property and that, furthermore, they obtain the respective authorization from the competent offices.

• c)

  It is prohibited to extract sand, earth and stone from the bed of rivers, streams and from the surroundings of dams and streams that cross or are located within the perimeter of the Municipality of the Central District without a special permit issued by the UGA, respecting the protection margins established in Art. 10 of Decree No. 36-2010 of April 22, 2008 containing the Law for the Creation of the National Commission for the Desanding of Rivers (CONADER), which prohibits authorizing the extraction of material at a distance less than two hundred (200) meters upstream and two hundred (200) meters downstream, which shall be the protection margin of bridge heads or supports, except for sewage greater than sixty (60) inches and bridge boxes. The violation of this prohibition shall be sanctioned with a fine not less than two thousand Lempiras (L.2,000.00) nor greater than five thousand Lempiras (L.5,000.00) and the total confiscation of the extracted material, in the case of the use of machinery the fine shall be ten thousand Lempiras (L.10,000.00) and the confiscation of the vehicle and extracted material. CHAPTER XII CEMETERIES

It is the responsibility of the Municipality through the Public Order Management to authorize the sale of plots in public cemeteries and any private cemetery operated by the Municipality. The interested party shall pay the corresponding amount in authorized banking institutions and subsequently shall register it in the Municipal Office. The use of plots in public cemeteries is free for the population, however, when it is desired to carry out any type of construction it is necessary to acquire ownership rights. Ownership rights in public cemeteries: The plot has an area of 1 meter wide by 2.50 meters long, and shall be charged under the following values: a) In the General Cemetery: In Sipile and Divino Paraíso: ¼ plot for L. 400.00 ¼ plot for L. 300.00 ½ plot for L. 700.00 ½ plot for L. 500.00 ¾ plot for L. 1,000.00 ¾ plot for L. 700.00 One plot L. 1,300.00 One plot for L. 900.00 EL DURAZNO CEMETERY ¼ OF PLOT L. 400.00 ½ PLOT L. 700.00 ¾ PLOT L. 1,000.00 COMPLETE PLOT L. 1,300.00 b) Permits for construction of slabs or sheets in accordance with design approved by the Building Control Management, in public cemetery: L 200.00 c) Permits for installation of crosses: L 50.00 d) Permits for construction of railings, niches or deposits: L 200.00 for each one and up to a maximum of 6 niches above ground level. e) Permits for construction of mausoleums or chapels: L 300.00 f) For each exhumation and complying with the provisions of the Health Office in public and private cemetery: L 800.00 g) Any type of certification issued by the cemetery administrator: L 150.00 CHAPTER XIII MARKETS, SALES STALLS, TEMPORARY AND INFORMAL VENDORS

In all matters concerning markets, sales stands, and temporary vendors, the Special Regulation on these matters shall apply, along with other provisions approved by the Municipal Corporation, in accordance with current laws.

The operation of markets in the capital city constitutes a public service, whose provision shall be performed, regulated, and monitored by the Public Order Management Office in accordance with what is established in the corresponding Market Regulation.

Temporary informal vendors shall pay a single fee of twenty (20) lempiras daily or six hundred (600) lempiras monthly. This fee corresponds to the provision of cleaning, security, and administration services for informal vendors. No vendor association is authorized to collect fees for occupied spaces and other services provided to the Municipality. The organization and control of these vendors is regulated through Agreement No. 134-02 of November 7, 2002. The Public Order Management Office, through the Permits and Street Vendors Division, shall exercise control over informal commercial activity (street vendor, temporary vendor, occasional vendors, stationary vendors, etc.) in public spaces of the Central District, as well as the cleaning, security, and organization of such spaces. The organization and control of these vendors is regulated by the Directive for the Control and Organization of Informal Vendors.

The Public Order Management Office shall submit monthly to the Finance and Administration Office a report containing the breakdown of income collected by said Office for each of the areas under its charge.

In the zones determined by the Municipal Corporation, street sales of any nature shall not be permitted. Notwithstanding, the Municipal Corporation may expand, restrict, or modify the limitations of the permitted zones. CHAPTER XIV SLAUGHTERHOUSE SERVICE

The butchering of livestock of any kind within the jurisdiction of the Municipality of the Central District shall only be permitted at the facilities of the Metropolitan Meat Processing Plant (PROMDECA), and the user of this service must pay, in addition to the livestock tax, the fees established by the Board of Directors of PROMDECA. No butchered meat may enter the city markets unless it has been processed at the plant. In special cases, when the meat comes from slaughterhouses authorized by the Agricultural Health Service (SENASA) of the Secretariat of Natural Resources and Environment (SERNA), entry permission shall be granted upon presentation of the Operating License issued by the Municipal Office of the place of origin. The Public Order Management Office, in conjunction with the Municipal Justice Department, shall ensure compliance with what is established in this chapter, and shall be authorized to seize the product in case of violation, which shall be disposed of for charitable purposes following inspection by SENASA certifying its fitness for consumption. Residents of the villages comprising the Municipality may butcher livestock for family consumption or for exclusive sale in their own village, with prior permission granted by the Municipal Justice Department and with authorization of the Auxiliary Mayor of the place and payment of the tax established in Article 82 of the Law of Municipalities.

The Municipal Justice Department may extend permits to transport live animals and livestock in corrals from one place to another (cattle, equine, porcine, bovine, etc.) subject to prior payment at any authorized financial institution at the rate of twenty-five lempiras (L.25.00) per head of large livestock, twenty lempiras (L.20.00) per head of small livestock, and fifteen lempiras (L 15.00) for each young animal within the municipal boundaries. Livestock coming from any other municipality with bill of sale and purchase documents are excepted. CHAPTER XV CERTIFICATES, STATEMENTS, TRANSCRIPTIONS, AND OTHER SERVICES

For the different transactions and acts that the taxpayer performs before the Municipality and its offices, the following shall be charged: Description Lempiras 1) For the issuance of statements, transcriptions, and certificates, as well as the replacement of the same. 150.00 2) For the authorization of legal books that merchants must maintain by law. 3) For the authorization of financial statements in electronic form. 1.00 per page 500.00 4) For each replacement of Operating Permits. 300.00 5) For the Registration Certificate of Residents in the R.N.P. 400.00 6) For the Registration Certificate of Naturalizations in the R.N.P. 500.00 7) For the processing of marriages based on Agreement No. 3424 of 4/11/88 for nationals. 350.00 8) Marriage permit for foreigners. 3,000.00 9) For the Authorization Certificate of marriages performed by Notaries. 500.00 10) For each field inspection to resolve files, issue opinions, grant authorizations, except for those categorized as small businesses according to Corporation Agreement number 096 contained in the Minutes of May 4, 2006. 200.00 11) For declaration of road feasibility for operating permits or construction of establishments for commercial, industrial, or service use. 300.00 12) For each opinion of the Municipal Justice Department, except for those categorized as small businesses, according to Corporation Agreement number 096 contained in the Minutes of May 4, 2006. 200.00 13) For Permit to celebrate marriages at home. 500.00 14) For obtaining documentation for the intent to urbanize. 500.00 15) For each zoning certificate issued by the Urban Planning Section. 15.00 16) For permit to proceed with the process of qualification and exemption of municipal taxes and fees. 500.00 17) Delivery of digital information (per unit). 18) Reproduction of photocopies of documents (per page). 19) For permit for non-profit party events authorized by the Municipal Justice Department. 20) For permit for profit-making party events authorized by the Municipal Justice Department, unless exceptions are determined by said office. 21) For the processing of requests for full ownership. 22) For processing of acts of release of liens. 20.00 1.00 100.00 500.00 400.00 23) For the processing of any administrative file before the Municipality. 150.00 300.00 The Municipal Mayor, or in his absence the Vice Mayor, is authorized to establish by agreement the rates and/or administrative fees that may be necessary to charge for the procedures and processes not previously contemplated. TITLE IV CONTRIBUTION FOR IMPROVEMENTS AND PROPULSION PROGRAMS UNIQUE CHAPTER GENERAL PROVISIONS

The contribution for improvements shall be paid by owners or possessors of real property and other beneficiaries of the execution of public works such as construction of urban roads, drinking water supply services, sewerage, electrical network installations, environmental sanitation, repaving, and, in general, any work performed by the Municipality for the benefit of the community. For the application of the contribution for improvements, the following shall be observed:

• 1)

  To determine the method of cost recovery of the work by the beneficiaries, the Municipality shall establish in a Special Regulation approved by the Municipal Corporation the general conditions regarding deadlines, interest, surcharges, legal actions for recovery, and/or any other economic or social factor, taking into account the nature and total cost of the work.

• 2)

  Works developed by the Municipality under the propulsion modality shall be governed by what the Special Regulation approved on this matter by the Municipal Corporation establishes.

• 3)

  The contribution affects the area of influence of the works and falls upon all benefited properties, considering as such the land surface or floor, with everything built, fixed, planted in the soil or adhered to it, whose existence and essential elements are contained in the cartographic document derived from an act of territorial survey duly registered in the Cadastral Management Office, or in title of ownership in default thereof.

• 4)

  Payment of the contribution is the responsibility of the owners of the properties, their heirs, administrators, legal representatives, testamentary executors, guardians and conservators of property, or persons acquiring them under any title. In case of changes in the title of ownership or possession, new acquirers shall be jointly and severally liable with the previous ones. When a property belongs to several persons, the obligation falls upon all of them jointly and severally.

The Contribution for Improvements shall be charged in accordance with the following rules:

• 1)

  When the investment and execution of the work was performed by the Municipality.

• 2)

  When the work is financed by or through the Municipality.

• 3)

  The Municipality may initiate collection of the contribution even if the work has not begun or been completed, provided there is prior agreement with the majority of residents, in cases such as the need for recovery for emergencies or needs of the work itself, and when required to anticipate payments or amortize some financing of the work.

• 4)

  Payment by the beneficiaries of the work may be made at the Treasury, at Banking Institutions, or other entities determined by the Municipality, and under the modalities agreed upon by the Corporation for such purpose.

• 5)

  Funds from the Contribution for Improvements shall serve exclusively to cover costs, including payment of financing obtained for that purpose, as well as for the construction of new works that benefit the public.

• 6)

  Failure to pay the contribution within agreed deadlines generates a late charge equal to the national banking interest rate.

• 7)

  When the execution of works benefits natural persons as users thereof, as in the case of bridges, boulevards, and similar works, a toll charge may be established under conditions determined by the respective regulation approved by the Municipal Corporation. What is not established in these provisions shall be subject to what is set forth in the Law on Contribution for Improvements, the Law of Municipalities, and its General Regulation. TITLE V OPERATING PERMITS FOR BUSINESSES CHAPTER I GENERALITIES

In order for a business, commercial establishment, or non-profit institution to operate within the municipal boundaries of the Central District, it is mandatory that the owners or their legal representatives obtain in advance the Operating Permit, which must be renewed in the month of January of each year. For the issuance of an operating permit for a business, it is a requirement that the owner or legal representative be current with all municipal taxes, fees, audit adjustments in full force, and contracts, and failure to comply with this shall result in denial or cancellation of the operating permit. To obtain this permit, the owner or owners of the business, establishment, or institution must be current with all municipal taxes and fees, audit adjustments in full force, contracts, and any other tax contemplated in special laws. For this purpose, personnel of the Municipal Office shall conduct the corresponding prior investigation before delivery of the operating permit. Failure to comply with the foregoing shall result in denial or cancellation of the operating permit, without prejudice to closure of the business or company. a) The operating permit shall be requested accompanied by a sworn statement of estimated sales expected to be made in the first quarter of operations for companies and a monthly payment of one hundred fifty lempiras (L 150.00) in the case of micro and small enterprises. For businesses beginning operations, these latter shall not be charged an opinion fee during the first year of operation, nor shall the adjustment for income declared in the year immediately following the opening of the business be applied; in other cases the sworn statement of income from the previous year shall serve as the basis. In subsequent years, the sworn statement of income corresponding to the previous year's income shall be made. The Municipal Mayor or, in his absence, the Vice Mayor, through the Citizen Assistance Management Office, shall have the authority to unify and simplify procedures with the different municipal offices for the processing and obtaining of the operating permit such that the taxpayer or applicant visits the fewest number of offices possible. b) For the obtaining and renewal of business operating permits, including main establishments and branches, except for the exceptions contemplated in this Plan, natural and legal persons shall pay annually according to their declared or verified income, in accordance with the following table: Income Range in Lempiras Annual Rate Operating Permits in Lempiras Up to 100,000.00 1 From 100,000.01 to 300,000.00 250 From 300,000.01 to 600,000.00 375 From 600,000.01 to 1,000,000.00 500 From 1,000,000.01 to 2,000,000.00 600 From 2,000,000.01 to 5,000,000.00 850 From 5,000,000.01 to 10,000,000.00 1,100 From 10,000,000.01 to 15,000,000.00 1,500 From 15,000,000.01 to 20,000,000.00 1,700 From 20,000,000.01 to 30,000,000.00 2,000 From 30,000,000.01 to 40,000,000.00 2,500 From 40,000,000.01 to 60,000,000.00 2,700 From 60,000,000.01 onwards 3,000 c) The Citizen Assistance Management Office shall establish, in accordance with its regulation, the requirements for requesting the operating permit for businesses for the first time. For billiard, carambola, manual or automatic electric game machine permits, the owner shall pay the amount of three hundred lempiras (L.300.00) monthly per unit, and for the operating permit of commercial foosball shall pay fifty lempiras (L.50.00) monthly. d) All types of service sales offices, charitable institutions and non-profit legal persons, and other natural and legal persons not subject to the Tax on Industry, Commerce, and Services shall pay for the initial operating permit or its renewal, an annual rate as follows: 1. Churches, ministries, and religious institutions in general: ONE LEMPIRA (L 1.00). 2. Primary and secondary level Educational Institutions: FIFTEEN THOUSAND LEMPIRAS (L 15,000.00) per education center. 3. Higher level Educational Institutions (universities): THIRTY THOUSAND LEMPIRAS (L 30,000.00) per education center. 4. Social assistance or welfare centers: FIVE THOUSAND LEMPIRAS (L 5,000.00). 5. Local development centers, community development centers, and similar: TEN THOUSAND LEMPIRAS (L 10,000.00). 6. Financial development organizations and similar: THIRTY THOUSAND LEMPIRAS (L 30,000.00). 7. Public law institutions: ONE THOUSAND FIVE HUNDRED LEMPIRAS (L 1,500.00). 8. Research centers: FIVE THOUSAND LEMPIRAS (L 5,000.00). 9. Cultural or sports centers: THREE THOUSAND LEMPIRAS (L 3,000.00) e) For the operation of commercial jukeboxes, owners shall pay monthly four hundred lempiras (L.400.00) per jukebox without prejudice to compliance with operational ordinances. f) Owners of businesses where slot machines or electronic bingos operate shall retain a percentage of five percent (5%) of prizes whose amount exceeds three thousand lempiras (L.3,000.00). Said retention shall apply to the total amount of the prize to be paid to the winners thereof and not only to the excess over three thousand lempiras (L.3,000.00). Values resulting from said retentions must be paid to the Municipality within the first ten days of the following month in which the retentions were made. Failure to comply with what is established in this subsection shall be punished with the temporary closure of the business or cancellation of the operating permit when appropriate. For declaration purposes, owners of such businesses shall do so through a special declaration together with the declaration of the tax on Industry, Commerce, and Services, using as a basis for the declaration the values paid in the previous year. Failure to declare and make the first payment in January shall result in the operating permit not being issued. For proper control of this matter, the Municipality shall conduct the pertinent audits semiannually. g) For operating permits for gaming tables including table or bar bingo in hotels, casinos, or any other tourist or non-tourist center, owners shall pay the amount of four thousand lempiras (L.4,000.00) annually. h) Bars, taverns, and liquor establishments shall pay for the operating permit or its renewal, according to the following monthly rate: With annual income up to L. 250,000.00 L. 200.00 From L. 250,000.01 to L. 350,000.00 L. 1,500.00 From L. 350,000.01 to L. 500,000.00 L. 3,000.00 From L. 500,000.01 onwards L. 5,000.00 j) The Citizen Assistance Management Office is authorized to issue, in special cases, without prejudice to zoning and existing land uses, operating permits for administrative offices and tax addresses for the sole purpose of notifications, domicile, and receipt of correspondence, provided they are located in the residence of the interested party, it being an essential condition that they do not generate vehicle traffic of any kind, cause disturbance to the surroundings, do not serve the public, and do not install signage. The authorization does not constitute a modification of land use or zoning, and the permit may be revoked when the Citizen Assistance Management Office deems it appropriate. CHAPTER II TEMPORARY OPERATION LICENSE

Any temporary activity with a maximum duration of three months, of a commercial, industrial, service, or performance nature of any kind open to the public, conducted by natural or legal persons of any kind, national or foreign, for profit or non-profit purposes, shall require prior temporary operating permit from the Municipality, which shall be processed and issued in the Tourism Management Office. Based on the procedure and calculation performed by the Tourism Management Office, the applicant shall proceed to make the corresponding payment at the Citizen Assistance Management Office. Temporary licenses shall be extended in accordance with the following rates:

• a)

  Occasional gaming in amusement parks, patron festivals, or seasonal fairs shall pay per month or fraction of a month FOUR THOUSAND LEMPIRAS (L4,000.00) for each gaming machine or gaming table, including any type of bingo.

• b)

  Temporary Operating Licenses for carousels and other electric and mechanical games for profit: 1. For national owners, L300.00 per day for each apparatus. 2. For foreign owners, L700.00 per day for each apparatus.

• c)

  Temporary Operating Licenses for Circuses: in addition to what is established in subsection d) of this article: 1. For national owners, L 300.00 per function. 2. For foreign owners, L1,100.00 per function d) Temporary operating licenses for cultural or musical performances of all kinds, national and international, presentation of theatrical works and similar artistic works, musical festivals, boxing, wrestling, installations of bingo or cardboard lottery, performances of all kinds with trained animals, and others not specified in this Plan, shall pay ten percent (10%) of gross or total income. A charge of only 5% of said income shall apply when artistic presentations are conducted for charitable purposes. e) Authorization of raffles without charitable purposes and with commercial promotion purposes for customers or product sales: 10% of the commercial value raffled. f) Temporary Operating Licenses for National and International Musical Concerts of all kinds shall be charged according to the following table at the time of requesting the permit from the Municipality. NATIONAL CONCERTS A Lps. 20,000.00 B Lps. 15,000.00 C Lps. 10,000.00 D Lps. 5,000.00 E Lps. 2,500.00 INTERNATIONAL CONCERTS A Lps. 350,000.00 B Lps. 250,000.00 C Lps. 220,000.00 D Lps. 175,000.00 E Lps. 120,000.00 The classification (A, B, C, D, E) corresponding to this International Concerts table shall be made according to the type of artist, production, venue, promotion, and capacity. When International Concerts are held for charitable purposes, following investigation conducted by the Municipal Office of the Central District, a waiver of up to a maximum of 10% of the total permit value shall be granted.

Natural or legal persons, non-profit institutions, and any other operating a business or commercial establishment and offices of any kind without the corresponding operating permit shall be subject to a fine according to income in accordance with the following table: INCOME OF UP TO FINE 1.00 to 50,000.00 500.00 50,000.01 to 100,000.00 1000.00 100,000.01 to 300,000.00 2000.00 300,000.01 to 500,000.00 3000.00 500,000.01 to 1,000,000.00 4000.00 1,000,000.01 onwards 5000.00 If, after one month in the case of permanent activities and five days in the case of temporary activities, following the imposition of said sanction, the respective permit has not been obtained, double the imposed fine shall be applied and closure until their legal situation is normalized. In case the breach persists for thirty calendar days, closure or final shutdown of the business or activity shall be proceeded with. TITLE VI FIREARM REGISTRATION

Natural or legal persons, prior to the process to obtain the permit to carry commercial firearms; revolvers of all types, short caliber, light rifles of all types, long caliber, and shotguns of long and shortened caliber, as well as any other legally permitted firearm, shall pay for the concept of registration or change of owner a fee of three hundred lempiras (L.300.00), to be renewed every four years. For persons domiciled in the Central District, only the permit issued by this Municipality shall be valid. The Municipal Secretariat is responsible for maintaining the Firearm Registry, through the corresponding office.

The Municipality holds the title, use, regulation, and administration of urban roads; it is the responsibility of the Territorial Planning Office to monitor compliance with the provisions of this Plan and other current regulations on the matter. Likewise, the Urban Mobility Management Office shall be responsible for authorizing the use of public roads for temporary activities of a sports, cultural, religious, or any other lawful nature in accordance with the Police and Social Coexistence Law. Additionally, signage and signalization matters, installation and maintenance of traffic lights, and establishment of traffic flow directions. The Urban Mobility Management Office, through the Transportation Engineering Section, shall grant permission for the placement of buoys, speed bumps, mechanical arms, surveillance booths, loading and unloading parking areas, urban and interurban public transportation, collective taxi points, minibuses, and other uses within the metropolitan area. For the granting of the respective authorizations, coordination shall be made, as applicable, with the National Traffic Office in accordance with the Transit Law. The request for the permit and the respective payment must be made during the month of January.

These permits and their renewal shall be paid in accordance with the following table:

• a)

  Light cargo and unloading vehicles of pick-up type, vans, passenger vehicles, minibuses, carmelitas and similar, SIX HUNDRED LEMPIRAS (L.600.00) annually.

• b)

  Heavy cargo and unloading vehicles of two axles of truck type, panel vans and similar, and valuables transport SEVEN HUNDRED FIFTY LEMPIRAS (L.750.00) annually.

• c)

  Heavy vehicles of three or more axles of cargo and unloading type such as box trucks, trailers, truck cabs and similar, NINE HUNDRED LEMPIRAS (L.900.00) annually. The parking authorization for these vehicles shall contemplate hours from 7:00 p.m. to 6:00 a.m. For each temporary parking permit during the hours indicated in the preceding paragraph, ONE HUNDRED LEMPIRAS (L.100.00) per day per unit shall be charged, except in cases of qualified donations by the Municipality administration.

• d)

  For parking permit of collective taxi points, six hundred lempiras (L.600.00) per unit shall be charged annually, for minibuses and interurban buses seven hundred fifty lempiras (L.750.00) per unit shall be charged annually, rate with the right to twenty-five (25) linear meters of parking. In each permit the Transport Engineering Section shall order the parking modalities of each motorized unit, in accordance with the corresponding Municipal Traffic Regulation and ordinances issued by the Corporation. -- For authorization to place traffic signs in residential areas that request it, for speed control prior to inspection, five hundred lempiras (L.500.00) shall be paid. The same concept shall apply to the installation of curb retention tubes in sidewalks and public roads paying one hundred lempiras (L.100.00) for each one. b) For the installation of mechanical arms for vehicle control, one thousand eight hundred lempiras annually shall be charged (L.1,800.00). The same amount shall be charged for structures to establish height limits for the circulation of certain vehicles. These amounts may also be paid semiannually, paying the equivalent amount with respect to the annual amount. For the installation of properly regulated surveillance booths five hundred lempiras annually shall be charged (L.500.00). In the case of authorizations established in sections a) and b) when it is for the first time, the amount equivalent to the year shall be charged, according to the date of its presentation when applicable.

The Urban Mobility Management shall notify the National Traffic Directorate of all permits requested that are not withdrawn within thirty (30) days following their authorization, so that vehicles executing the respective activity cannot perform it until they obtain said permit. In case of non-compliance, the Municipality shall sanction the offender and the Traffic Police shall seize the unit.

The obtaining of the respective permit during the month of January of each year is mandatory, otherwise the person is subject to the fine established in this Plan. Taxis, as well as owners of vehicles that perform exclusive parking activities, cargo and unloading, or the boarding or disembarking of passengers without the corresponding permit, shall be sanctioned with a fine equivalent to fifty percent (50%) of the amount to be paid for this concept, in addition to immediately requesting the permit in reference, which shall be granted and charged for the full year period. In the case that natural or legal persons install cones, rims, signs, etc., used as signaling to reserve parking spaces, these shall be seized and returned to their owners upon payment of one hundred lempiras fine for each one (L.100.00).

Carrying out the cargo and unloading activity outside of what is established in the regulation, in which schedules and capacity of heavy vehicles to the urban area are established, shall be sanctioned as follows:

• a)

  Minor Infraction - Fine of one thousand two hundred lempiras (L.1,200.00)

• b)

  Serious Infraction - Fine of three thousand lempiras (L.3,000.00)

• c)

  Very Serious Infraction - Fine of six thousand lempiras (L.6,000.00)

The Urban Mobility Management is authorized to seize vehicles, scrap, and other property and objects found abandoned in public roads, or those that although having a known owner are parked in the passage of vehicles and pedestrians. The driver of the vehicle that is parked in places where the sidewalk curb is painted yellow or in places where the curb is painted green when residential use is intended, shall be sanctioned, provided that the resident does not permit it; in the case of the curb painted blue, it shall be designated to allow parking for any type of private or particular vehicle or similar vehicles that carry out cargo and unloading. Likewise, the Urban Mobility Management is authorized to use tow trucks or other transport mechanisms to transfer vehicles, scrap, property or seized objects to the property or properties it enables, transferring the costs incurred to the owner of said property or objects, plus a fine of four hundred lempiras (L.400.00) for vehicles parked in prohibited or restricted places for this purpose; on the other hand, drivers of vehicles parked on the sidewalk in any sector of the Central District shall be sanctioned with three thousand lempiras (L.3,000.00). In the same manner, the amount of one hundred lempiras (L.100.00) shall be charged for each calendar day the seized property remains in the Municipality warehouse, computing within the fine the day on which the owner retrieves the seized property or object. The Road Management Department is instructed to conduct the pertinent negotiations so that the charge for tow truck use or removal mechanism mentioned in the preceding paragraph in no way exceeds eight hundred lempiras (L.800.00). Upon the lapse of a period of sixty (60) calendar days counted from the day of seizure of the vehicle, scrap, property or object, it shall be auctioned or sold. For these purposes, the Urban Mobility Management shall proceed as follows:

• a)

  It shall make the pertinent coordinations with the Executive Direction of Revenue (DEI) regarding vehicles, notifying it of the procedure being followed, as well as the removal of the same from the database in case it is auctioned as scrap or notifying of the transfer of the same.

• b)

  In any case, it shall make a publication in a mass communication and written media within the municipal term, which shall contain the auction notice, the description of the articles or property to be auctioned, the value thereof, and the date and time of the auction.

• c)

  When the day of the auction arrives, it shall be conducted in the presence of a Commission made up of representatives of the Collection and Financial Control Management, Internal Audit, Legal Services Management, Municipal Property Office and Municipal Secretariat. The corresponding minutes shall be drawn up and signed.

• d)

  Bids shall be received only by cashier's check.

• e)

  The funds collected shall be deposited the same day in the special account opened for these purposes. The deposit receipt shall be sent to the Collection and Financial Control Management for accounting entry.

• f)

  For each award, the natural or legal person who acquires it shall sign the minutes, transfer or receipt that corresponds, attaching the documents required.

Prior to conducting the auction, the Urban Mobility Management shall notify the Municipal Property Office so that it registers the corresponding property within the Municipality's asset inventory. Once the auction has been held, it shall remove from the asset inventory those property that has been auctioned and awarded, recording the income for each asset.

Once the corresponding costs are covered, the Finance and Administration Directorate shall allocate the difference of the funds to an account to cover maintenance expenses and placement of new traffic lights on public roads, street signage, traffic education programs and others that may be required by the Urban Mobility Management. TITLE VIII OTHER TAXES CHAPTER I TAX FOR USE OF MUNICIPAL SPACE

Cellular telephone companies located within the municipal space that belongs to the jurisdiction of the Central Municipality shall pay annually the amount of one hundred thousand lempiras (L.100,000.00) per tower and ten thousand lempiras (L.10,000.00) per antenna. The Citizen Service Management is authorized to create the procedure for the collection established in the preceding paragraph. This payment must be made within the month of January of each year. CHAPTER II SECURITY TAX

A tax shall be charged as a contribution to citizen security and community coexistence in order to strengthen the logistic, operational, numerical capacity and other aspects of the Municipal Police of the Central District. For the administration and execution of the funds collected, a special account shall be created to serve the purposes of this tax. This contribution shall be distributed in direct proportion to the different levels of sales on which the Tax on Commerce, Industry and Services is paid, and the rate shall be as follows: Sales Income Levels Monthly Tax per Contributor From 0.00 to 100,000.00 10.00 100,000.01 to 600,000.00 20.00 600,000.01 to 1,000,000.00 60.00 1,000,000.01 to 2,000,000.00 90.00 2,000,000.01 to 5,000,000.00 400.00 5,000,000.01 and above 600.00 This tax shall be charged monthly and together with the Tax on Industry, Commerce and Services. Businesses included within the historic downtown area and/or in those areas of the capital where the street vendor eviction process has been carried out shall pay the citizen security tax in order to prevent illegal placement of the same, in accordance with the following Table: Sales Income Levels Monthly Tax per Contributor From 0.00 to 100,000.00 75.00 100,000.01 to 600,000.00 370.00 600,000.01 to 1,000,000.00 800.00 1,000,000.01 to 2,000,000.00 1,200.00 2,000,000.01 to 5,000,000.00 1,600.00 5,000,000.01 and above 2,600.00 This tax shall be charged monthly and together with the Tax on Industry, Commerce and Services.

Legal persons not subject to the Tax on Industry, Commerce and Services shall pay a fixed security tax equivalent to one thousand five hundred lempiras (L.1,500.00). CHAPTER III TAX ON LIVESTOCK BRANDING IRON REGISTRATION

Livestock branding irons must be registered in the Secretariat and shall pay as follows: Initial Registration...............................L.150.00 Registration Renewal................................L.75.00 Brand Marks...................................................L.75.00 Authorization to manufacture branding irons......L.50.00 TITLE IX FINES AND SANCTIONS

The verification that a declaration with false information has been presented with the object of evading municipal tax shall be sanctioned with a fine equivalent to one hundred percent (100%) of the evaded or intended to be evaded tax, without prejudice to the payment of the tax and the fulfillment of other sanctions typified in the respective laws.

The Municipality shall sanction different offenders in accordance with the following:

• a)

  Owners of all classes of animals that circulate on public roads, in plazas and other public places shall be sanctioned with a fine of five hundred lempiras (L.500.00) per head. On unpaved main roads fifty percent (50%) of the fines established in the above classification shall be charged. Access and penetration roads are excluded. If the owner reoffends by allowing the vagrancy of animals of his property, the value of the stated fines shall be doubled. The official or employee who does not apply the fine in its correct value for reoffense shall be jointly liable for payment of the same.

• b)

  For construction of speed bumps on paved public roads a fine of L.100.00 per linear meter shall be imposed without prejudice to the demolition of the bump and repair of the damage caused to the street.

• c)

  For construction of platforms for garage entrances without the respective permit, a fine of one thousand lempiras (L.1,000.00) shall be imposed, without prejudice to the demolition of the platform and repair of the damage caused to the street or sidewalk.

• d)

  Taxis, as well as owners of businesses that perform parking, cargo or unloading in Tegucigalpa or Comayagüela without the corresponding permit, shall be sanctioned with a fine equivalent to fifty percent (50%) of the amount to be paid for this concept in addition to immediately requesting the permit in reference, which shall be granted and charged for the full year period.

• e)

  For use without permits of chains, fences, buoys, mechanical arms, and similar items that obstruct vehicular or pedestrian traffic, a fine of five hundred lempiras (L.500.00) shall be imposed.

• f)

  For entering vehicles on pedestrian streets to perform any type of activities without authorizations, a fine of five hundred lempiras (L.500.00) shall be imposed.

• g)

  For damage caused to the street surface condition, whether for vehicle washing, installation of obstacles or others, a fine of five hundred lempiras (L.500.00) shall be imposed each time it is required.

• h)

  For installation of curb retention tubes on public roads without authorization a fine of one hundred lempiras (L.100.00) per tube shall be imposed, without prejudice to their removal.

• i)

  For occupation of public roads to perform any type of event without due authorization, sanctions shall be imposed as follows: 1) For obstructing vehicular traffic a fine of L.2,000.00 2) For obstructing pedestrian traffic a fine of L.1,000.00 j) Vacant urban lots without fencing, abandoned or deteriorated dwellings shall pay a monthly fine of seven hundred fifty lempiras (L.750.00). k) Trucks that transport garbage and/or construction materials shall pay a fine of five hundred lempiras (L.500.00) each time the unit is found without a tarpaulin. l) Lack of sidewalks or damaged sidewalks in paved areas, the owner or occupant in any capacity shall be sanctioned with a monthly fine of fifty lempiras (L.50.00) per linear meter of sidewalk, without prejudice to its construction or repair. m) For performing a light show or fireworks display without authorization from the Municipal Justice Department, a fine of five thousand lempiras (L.5,000.00) shall be imposed. n) For dumping garbage, debris or waste of all types on vacant lots, roads, streets, alleys, riverbanks, ditches or any other public or private place; a fine of one thousand lempiras (L.1,000.00) each time shall be imposed, without prejudice to the offending person removing the dumped material. o) For parking vehicles on sidewalks or in unauthorized areas a fine of seven hundred lempiras (L.700.00) shall be imposed each time it is required, without prejudice to payment for tow truck service for the removal of the vehicle from the offending owner, in coordination with the National Traffic Directorate. p) For washing vehicles on public roads, five hundred lempiras (L.500.00) each time it becomes necessary. q) For transporting livestock meat to the Central District without the respective hygiene and safety measures, seizure of the product shall be proceeded with. r) For installation of tubes, chains or similar items in shared parking areas of urbanizations, a fine of three hundred lempiras (L.300.00) shall be charged for each tube, chains or similar items, without prejudice to their removal at the cost of the offender. s) Disregard of summons from the Urban Construction Control Management shall be sanctioned with a fine of two hundred lempiras (L.200.00) the first time, five hundred lempiras (L.500.00) for the second occasion and one thousand lempiras (L.1,000.00) for disregard of the third summons. t) Buses and taxis operating points without authorization from the Transport and Road Department shall be fined one thousand lempiras (L.1,000.00) per unit, which shall be seized with the assistance of the National Traffic Directorate. u) Every workshop dedicated to automotive repair activities must keep vehicles within the assigned establishment. For obstructing and using public sidewalks as an extension of automotive repair workshops, with any type of vehicle, a fine of L.1,000.00 shall be applied. v) Workshops that use public sidewalks and green areas as an extension of their workshop shall be sanctioned with seizure of the vehicle or vehicles, and workshops that reoffend more than 2 times shall be imposed a fine of five thousand lempiras (L.5,000.00), without prejudice to seizure of the vehicle and closure of the business.

The Urban Construction Control Management may order the suspension, closure or demolition of construction works for the following causes:

• a)

  Incurring in falsity in the data entered in the permit request.

• b)

  Executing a work without proper license or approval, or with special, falsified or altered permits.

• c)

  Executing work without a director, when this is necessary.

• d)

  Executing works that endanger the life or property of persons, without proper precaution.

• e)

  Preventing Municipality personnel from performing their functions.

• f)

  Using a construction that has been declared high risk without the authorization of use or occupancy certificate, and g) Building in zones declared Cultural Heritage or buildings denominated National Monuments, without the corresponding authorization from the Honduran Institute of Anthropology and History. h) At the request of the owner, the Municipality may grant a period to correct the deficiencies that motivated the suspension or closure. Upon expiration of the granted period without the deficiencies being corrected, both the owner and the builder shall be sanctioned.

The Municipality shall sanction the following acts:

• a)

  Obstruction of traffic on streets, boulevards, roads or public places by motor vehicles, a fine of two thousand lempiras (L.2,000.00) per day shall be imposed;

• b)

  Obstruction of traffic through destruction of the road or construction of any kind, a fine of five hundred lempiras (L.500.00) shall be imposed, independently of the offender enabling passage by leaving the road in perfect condition.

• c)

  Urban transportation units must inform their passengers not to throw garbage on the street and when this occurs drivers shall be sanctioned with fifty lempiras (L.50.00) each time.

The failure to pay the fines and sanctions established in this Plan of Levies generates a surcharge of interest equal to the highest active interest rate prevailing in the national financial system, plus an additional two percent annually. TITLE X OF CONTROL, ADMINISTRATION AND INSPECTION CHAPTER I OF DECLARATION

Taxes are satisfied through sworn declarations that must be submitted by taxpayers. The exception is the Tax on Real Property, in which the determination is made based on the data contained in the Cadastral Registry or in the declarations submitted by the owners of non-registered properties. For the Livestock Tax, the declaration is satisfied through the payment receipt issued by the Municipal Treasury or by banking institutions.

For the purposes of the preceding article, the Municipality shall make available to taxpayers the corresponding forms. The lack of forms does not exempt taxpayers from the obligation to submit their declarations within the terms established in the Law; in this case, taxpayers may submit their declarations on plain paper, containing the necessary data to determine the tax to be collected, in accordance with the information established by the Municipality. CHAPTER II OF PAYMENTS

Taxpayers subject to municipal taxes and fees may pay said tributes in advance. Provided that such payment is made entirely four or more months prior to the legal deadline, taxpayers shall have the right for the municipality to grant them a discount of ten percent (10%) of the total tribute paid in advance. Consequently, in order to be entitled to this discount, tributes must be paid no later than:

• a)

  The Tax on Real Property in the month of April or before.

• b)

  The Personal Tax in the month of January or before.

• c)

  The Tax on Industry, Commerce and Services, in the month of September of the prior year or before, when paid for the entire year, and proportionally when payment is made after this date.

• d)

  The remaining municipal taxes and fees must comply with a minimum of four months in advance.

Taxes, contributions, fines, services and other fees shall be paid at banking institutions and shall bear the electronic stamp and/or manual stamp of the institution where the payment is made. The Municipality must implement systems for the collection of tributes that allow for the greatest efficiency and effectiveness in their collection, through the most appropriate modern technologies, simplifying for the taxpayer the fulfillment of their obligations and guaranteeing to the Municipality the security and control of the system. For these purposes, the Municipal Mayor is authorized to execute the contracts that are most convenient and economical for the Municipality, and must inform the Municipal Corporation.

General provisions on payments:

• a)

  Any tax contained in the Law or this Plan may be subject to the Municipality establishing its payment through monthly and advance installments.

• b)

  Every payment that the Municipality or its authorized dependents order for fines or sanctions, licenses or permits, must be entered no later than ten (10) business days after notification.

• c)

  It is prohibited for the Municipality's dependents to receive any type of payment from taxpayers.

• d)

  Once the adjustment, correction, verification or review of an obligation in favor of the Municipality becomes final, the payment deadline shall be three business days. CHAPTER III OF CONTROL AND INSPECTION

In the exercise of its inspection function, the Municipality, through the corresponding offices, has powers to:

• a)

  Organize the administrative collection of taxes, fees, contributions, services and other charges.

• b)

  Control the rates set for the services it provides and other charges. The rates for these services shall be controlled and inspected through the opening of special bank accounts for each service. The Municipality's administration shall submit monthly reports to the Municipal Corporation on the use of all these funds.

• c)

  Require from taxpayers the information, documents, books, contracts, payroll records, and others that are indispensable to establish tax obligations. The requirements include third parties who have knowledge of the operations subject to investigation.

• d)

  Apply in strict sense the tax provisions issued by the same Municipality. For this purpose, its purpose, its economic significance and the principles of public law shall be considered.

• e)

  Facilitate the taxpayer's compliance with tax obligations, through proper dissemination of the provisions in effect.

• f)

  Demand payment of taxes, contributions, services and other charges that are final by implementing efficient modalities and modern collection systems.

• g)

  Verify the content of sworn declarations, applying the analyses or investigations it deems convenient.

• h)

  In case taxpayers do not submit sworn declarations or corresponding information, estimate of its own motion and by presumptive income their tax obligations.

• i)

  Impose on violators of the approved provisions the sanctions in accordance with the laws, agreements or provisions in effect.

• j)

  Hear and resolve the inquiries made by taxpayers.

• k)

  Take timely actions as a consequence of its tax administration function.

• l)

  Establish the standards that are necessary to improve the administration and inspection of the municipal tax system. For these purposes, the current account system shall be organized, integrated by taxpayer, including user applications using information services administration.

• m)

  Any other functions that the Law or this Plan grants it.

The Finance and Administration Department or the dependent it designates shall conduct all the proceedings or investigations that are necessary and useful to carry out the examination of the declarations submitted by taxpayers.

In the exercise of their functions, the municipal employee must comply with the standards and instructions that the immediate or superior authority issues, being faithful in the verifications or reviews and protecting municipal interests. In case of doubt, they shall adhere to the principles of justice and equity, without contravening legal standards.

Once the review is completed, the employee shall submit to their immediate supervisor a detailed report of the same, shall express the reasons on which they base the formulation of the tax adjustment and shall clearly indicate the amount to be collected or refunded, through a credit note.

The adjustment resulting from the review shall be brought to the knowledge of the taxpayer by delivering them personally a complete copy with its grounds, or shall be notified in the manner provided for in the Administrative Procedure Law.

The date of the adjustment for all legal purposes shall be the date on which it is brought to the knowledge of the taxpayer, in accordance with the preceding article.

The actions that the Municipality might have against individuals, arising from tax obligations, by virtue of the Municipalities Law and subordinate standards shall prescribe within a term of five years, being interrupted only by judicial actions. For the purposes of this article, the application of prescription criteria must be requested in each particular case by the taxpayer; as long as it is not requested, the Municipality may demand payment of what is owed. The Municipal Secretary in coordination with the Finance and Administration Department shall establish the requirements for the pertinent requests and shall elaborate an expedited procedure for their resolution. The Mayor or the official they designate is authorized to resolve the petitions that individuals present on this provision.

The initiation, substantiation, resolution, notification and use of remedies that must be followed in the processing of administrative cases carried out in the Municipality of Central District must be adjusted to what is provided for in the Administrative Procedure Law and in the pertinent provisions of the Municipalities Law and its Regulation. TITLE XI OF SOME PROCEDURES CHAPTER I OF PRESENTATION

In compliance with what is stated in the preceding article, interested parties must submit their petitions, writings, statements and others that correspond, at the Municipal Secretary or at the office designated for such purposes, which must order the opening entry based on the principles of procedural economy, promptness and efficiency and following the terms indicated by the Law for its timely resolution. This office shall also follow what is established in the Administrative Procedure Law to notify the interested party of any incident, lack of requirement, or any defect that the writing and documents presented may have. To admit claims, reconsiderations of assessment, or challenges that arise from the fixing or liquidation of any tribute or sanction, the interested party must previously make the payment of the amount set by the Municipality or reach a payment arrangement. The payment arrangement that is executed shall be subject to what is resolved as a result of the challenge or claim filed by the taxpayer, once its resolution acquires the character of final and binding. In case of non-compliance with the provisions of the preceding paragraph, no processing shall be given to the remedies, claims, reconsiderations of assessment and/or challenges that arise from the fixing or liquidation of any tribute or sanction.

The Cadastral Management Office is authorized to admit, process, and resolve complaints, objections, or petitions related to cadastral matters filed by taxpayers in an expedited, simplified, and transparent manner. In cases of claims where the cadastral appraisal exceeds seven point five million Lempiras, the interested parties must substantiate their appraisal through a professional registered in the Registry of Valuators of Movable and Immovable Assets maintained by the National Commission of Banks and Insurance for such purpose. For better and more accurate resolution, it may be assisted by a technical advisory or consulting team composed of organizations with which the Municipality maintains agreements and representatives of the community. Additionally, through the Land Use Planning Department, the Cadastral Management Office shall prepare and submit a semi-annual report to the Municipal Corporation containing the admitted and resolved requests.

Taxpayers who believe they have paid excess or improper taxes, contributions, services, or other fees shall be subject to the directives that the General Management establishes for the application of compensations and recognition of credit notes and shall submit their requests in writing to the Finance and Administration Department. Resolutions of these claims up to two hundred thousand Lempiras (L. 200,000.00) shall be authorized by the General Management and the Finance and Administration Department. Resolutions of two hundred thousand one Lempiras (L. 200,001.00) and above shall be additionally authorized by the Municipal Vice Mayor. In both cases, said resolutions shall be countersigned by the official designated for such purpose by the Mayor or Municipal Vice Mayor in his absence.

Recognition of excess or improper payment shall be made by means of a credit note resolution, which shall be executed immediately and without further procedure by the Accounting Department, which shall apply it to the payment of present or future taxes, fees, or contributions for services, municipal rights, or any other tax obligation or levy.

The Municipality may compensate debts it owes to natural or legal persons in accordance with the procedure established and under the same parameters of Article 166. Without prejudice to the provisions of this article, the General Management is authorized to regularize of its own motion through the Income and Expense System those debts that the Municipality owes to private parties, and which they, in turn, maintain pending payment obligations to the Municipality.

All prohibitions regarding construction, subdivisions, urbanizations, aesthetics, environment, zoning, and ecology shall be governed by the respective regulations.

The Municipality is the owner of every tree or plant sown in public roads; consequently, no person may fell or cut trees without prior authorization from the Municipal Environmental Management Unit. This provision is extended to trees planted on private property. In case a tree is authorized to be felled for special reasons, it shall be mandatory to plant at least two (2) trees in the areas designated by the municipal department. The violation of the provisions of this article shall be sanctioned with a fine of two thousand Lempiras (L. 2,000.00) for each tree cut. The felling of trees, shrubs, and brushwood in the hydrographic basins that cross the urban centers of the Municipality is strictly prohibited. The violation of this provision shall be fined at a rate of three thousand Lempiras (L. 3,000.00) per square meter deforested.

It is strictly prohibited:

• a)

  To proclaim announcements by means of loudspeakers or tape recorders with or without music without the corresponding municipal permit. Proclamation shall be authorized at a rate of one thousand three hundred Lempiras (L. 1,300.00) annually. Violation of the provisions shall result in a fine of one thousand five hundred Lempiras (L. 1,500.00).

• b)

  The use of horns adapted to the original vehicle horn and those placed outside the body, as well as sounding horns in the following areas: Hospitals, Health Centers, Nursing Homes, Schools, Colleges and other Educational Centers, Public Buildings, Religious, Cultural Centers and similar, Military Barracks and Battalions. Violation of these provisions shall result in a fine equivalent to one thousand five hundred Lempiras (L. 1,500.00) per violation. No person is authorized to make noise with horns, whistles, ocarinas, megaphones, sirens, etc. in residential zones between 6:00 in the evening and 6:00 in the morning except for ambulances, firefighters, police, and others authorized by law.

• c)

  To engage in marches and school exercises on streets and public roads without the respective permit from the Municipality.

• d)

  It is prohibited to locate businesses such as shops, billiard halls, bars, nightclubs, as well as any business that goes against morality and good customs within one hundred meters of Educational Centers, Public Offices, Churches, and Monuments within the Historic Center of the Central District; therefore, the operating permit of these centers shall be cancelled.

• e)

  Kino games to which a fine of two thousand Lempiras (L. 2,000.00) shall be applied and the confiscation of the equipment.

Without prejudice to the provisions of this Plan, the placement of commercial and political advertising in the following places is prohibited:

• a)

  On rocks, trees, and other natural elements.

• b)

  On curves, slopes, vehicular and pedestrian bridges, posts, vehicular grade separation passages, intersections in right of way, and traffic signals, with the exception of advertising installed on private property.

• c)

  The placement of commercial and political advertising in plazas, parks, archaeological areas, historical monuments, and other places of tourist interest within the Historic Center is prohibited; violation of the provisions of this subsection shall be sanctioned with a fine of up to five thousand Lempiras (L. 5,000.00) to the natural or legal person owning said advertising. As well as the requirement of its immediate removal.

• d)

  In cemeteries, religious temples, poorhouses, nursing homes, and similar establishments.

• e)

  On vehicle windows that obstruct the driver's vision or on lighting devices (brake lights, pathway lights, headlights) or over the registration numbers of rental vehicles. It is prohibited to affix advertising or propaganda on posters and walls using any type of adhesive. Violation of the provisions of this article shall be sanctioned with a fine of up to five thousand Lempiras (L. 5,000.00), without prejudice to the obligation to remove the advertising at the cost of the violator.

It is strictly prohibited:

• a)

  To change the traditional names of buildings or complexes of historical value that have their name registered in Historical Archives, applying a fine of ten thousand Lempiras (L. 10,000.00).

• b)

  In case of continuation of construction and remodeling work on Immovable Property not authorized by the Historic Center Management and/or the changes made violate the guidelines of the Historic Center Management Regulation, the suspension, closure, or demolition of unauthorized works shall be ordered and a fine of FIVE THOUSAND LEMPIRAS (L. 5,000.00) shall be charged, with the cost of demolition charged to the violator. For the demolition of a building within the Historic Center, the procedure shall begin in the Historic Center Management, which shall issue a favorable or unfavorable opinion on the same, in accordance with the Honduran Institute of Anthropology and History, with the Construction Control Management being the entity responsible for issuing the respective permits. Demolition carried out without the respective authorization shall cause a fine of ONE HUNDRED PERCENT (100%) on the cadastral value of the property to be demolished without prejudice to the application of other fines and sanctions established by current laws and regulations. When a demolition is carried out by order of the Municipal Corporation or other authority, the amount established in the Tax Plan shall be charged to the property owner, plus additional costs.

• c)

  To dump or throw garbage and dead animals in streets, plazas, historical monuments, and other public places that make up the Historic Center of the Central District shall be sanctioned with one thousand Lempiras (L. 1,000.00) each time, without prejudice to the violator removing the dumped material.

• d)

  To locate businesses such as shops, billiard halls, bars, nightclubs, as well as any business that goes against morality and good customs within one hundred meters of Educational Centers, Public Offices, Churches, and National Monuments within the Historic Center of the Central District, for which the operating permit shall be cancelled, without prejudice to the definitive closure of the business in case of violation.

• e)

  The placement of commercial and political advertising in plazas, parks, archaeological areas, historical monuments, and other places of tourist interest within the Historic Center of the Central District is prohibited; violation of the provisions of this subsection shall be sanctioned with a fine of up to five thousand Lempiras (L. 5,000.00) to the natural or legal person owning said advertising, without prejudice to the obligation to remove the advertising at the cost of the violator.

• f)

  The use of loading or unloading areas between 7:00 AM and 7:00 PM without the respective authorization from the Historic Center Management of the Central District is prohibited, as well as loading and unloading in areas not established as such, for which a fine of Six Hundred Lempiras (L. 600.00) shall be imposed each time required in coordination with the Traffic Planning Department of City Hall and the General Transit Management.

• g)

  To throw construction debris obstructing free transit on streets and sidewalks shall result in a fine of L. 3,000; as well as the requirement of its immediate removal.

For failure to maintain inventoried buildings that cause damage to third parties, a fine of twenty-five thousand Lempiras (L. 25,000) shall be imposed without prejudice to corresponding indemnifications.

The Historic Center Management shall be responsible for issuing the land use compatibility authorization for the establishment of businesses or the renewal of operating permits within the Historic Center, being essential for the issuance of the business operating permit or its renewal. Said certificate shall be issued based on the current urban zoning at a value of one hundred fifty Lempiras (L. 150.00).

The Municipal City Hall shall issue a certificate of compliance to those who have paid all their tax obligations, which shall be issued by the Finance and Administration Department, through the Collection and Financial Control Management.

No worker, employee, official, employer, company, establishment, business, or natural or legal person domiciled, residing, or residing in the Municipality that sells, produces, or has income in the Central District shall be accepted a certificate of payment or exemption of municipal taxes extended by another Municipality.

Prior to resolving requests that imply the granting of rights by the Municipality, it must verify the compliance status of the petitioner, interested party, or beneficiary, through the Collection and Financial Control Management.

For better administration of taxes, the Municipal Corporation, the Mayor, or the Vice Mayor in his absence may establish a policy of correspondence and cooperation with other municipalities, as well as with the Executive Revenue Directorate, the Superior Court of Accounts, the Association of Municipalities of Honduras, and other State agencies.

The Municipal Mayor is authorized to exchange information with other municipalities on aspects and matters of a tax nature and the situation of taxpayers subject to the different taxes, on a basis of reciprocity.

No institution, whether for profit or not-for-profit, may be exempted, waived, reduced, forgiven, or have its tax payment modified, except in cases where the Law permits, without prejudice to the payment arrangements established in Article 121 of the Law of Municipalities and 76 of its Regulations.

For purposes of obtaining the operation permit for not-for-profit legal entities, the Collections and Financial Control Management shall issue a certificate stating that said legal entities are not subject to the tax on industries, commerce and services. Once it is verified that it is a not-for-profit legal entity, it shall forward the application together with the certificate to the Citizen Services Management, where the interested party shall obtain their operation permit. The request for a certificate shall be submitted to the Collections and Financial Control Management, accompanied by a photostatic copy of the identity card and municipal solvency of the legal representative, as well as the payment of the certificate and the resolution or agreement that certifies their condition as a not-for-profit legal entity.

Taxes, fees, fines and other charges shall be paid at duly authorized banking institutions, without need for prior demand and without prejudice to the procedures that may be adopted. The terms or periods for making such payments shall be those established in the laws, regulations, or in this Plan.

The tax obligations of taxpayers are extinguished by payment, compensation, prescription, or by any other means established by Law.

The debt arising from the application of taxes, contribution for improvements, municipal fees and rights constitutes a preferred credit in favor of the Municipality.

Without prejudice to other provisions contained in the laws and regulations, taxpayers and other responsible parties are obligated to:

• a)

  Present declarations and pay taxes, contributions, services and other charges, within the periods established in the laws, this Plan and other agreements issued by the Corporation.

• b)

  Keep, when corresponding and in accordance with the Commerce Code, the books and other mandatory and necessary accounting records, as well as those required by the Corporation for persons not obligated to keep books and records.

• c)

  Record the operations of income and expenses on the corresponding dates, supporting said records with their supporting documents.

• d)

  Act as a Withholding Agent in cases where the Law, this Plan or the Corporation so provides.

• e)

  Comply with any other provision issued by the Corporation.

It is strictly prohibited to use the sidewalks, roadways and green areas of the city for the display of merchandise or any other objects that obstruct the passage of pedestrians. Violation of the foregoing shall be sanctioned with a fine between five hundred Lempiras (L.500.00) to two thousand Lempiras (L.2000.00), without prejudice to the retention of the objects or products that cause the obstruction and closure of the responsible establishment, or cancellation of the permit held by the offender.

The control and monitoring of the collection system of the different municipal taxes, as well as the definition, coordination and establishment of the procedures and administrative routines to be followed in order to obtain the greatest efficiency in said function, shall be the responsibility of the Finance and Administration Directorate through the Collections and Financial Control Management, through the department that it designates. For these purposes, the different departments responsible for the municipality that participate in the collection process given the nature of their functions, shall comply with the system and procedures established by said office.

In accordance with this Plan of Arbitrios, the Municipal Mayor's Office of the Central District, in the exercise of collecting municipal services provided or any other debt in its favor, may take the following actions:

• a)

  Publish in the media the list of natural and legal persons in default.

• b)

  Place on the exterior of commercial premises or properties belonging to natural or legal persons in default, visible signs or tapes expressing their default status.

• c)

  The temporary closure and cancellation when appropriate of the Operation Permit of commercial establishments that, once required due to default in the payment of municipal fees, do not comply with such requirement, said temporary closure and cancellation of the operation permit shall be made in accordance with what is established in the Law of Police and Social Coexistence.

• d)

  Order through the Collections and Financial Control Management the temporary closure of commercial establishments of any kind, administrative offices, branches, quarries, urban development projects, when once required for payment by said management, the taxpayer does not effect payment within the period established in the requirement. If the measure persists for more than 30 days due to lack of payment, it shall be grounds to request the Citizen Services Management to initiate the procedure for cancellation of the operation permit.

Information on payments and fines imposed that taxpayers have not cancelled and that remain pending, shall be transferred to the Collections and Financial Control Management, to be credited to the annual liquidations and for the payment of municipal taxes and fees.

In accordance with Article 4, numeral 9, of the Law of Police and Social Coexistence, the Public Order Management shall be responsible for implementing measures to control vagrancy of domestic animals, requiring the availability of the necessary shelters and being able to request support and collaboration from social or charitable institutions. Authorization is granted to collect the corresponding fee for the rescue and maintenance of animals that are claimed by their owners. The mechanism for collecting this fee shall be implemented in coordination with the Finance and Administration Directorate. The Public Order Management in coordination with the Municipal Department of Justice, shall apply the sanctions contemplated in the Law of Police and Social Coexistence for these cases.